Orissa Sponge hits upper circuit on competitive open offer

MUMBAI: Shares of Orissa Sponge Iron & Steel hit its upper circuit in early trade on Wednesday after Mounteverest Trading & Investment, along with Monnet Ispat and two other firms, made a competitive open offer to acquire Orissa Sponge for Rs 310 a share.

Mounteverest Trading along with Torsteel Research Foundation, TRFI Investment and Monnet Ispat have made the offer, according to media reports.

Monnet Ispat had bought 27 per cent in Orissa Sponge on Tuesday, according to its statement to stock exchanges. Mounteverest, along with TRF and TRFI, hold 38.65 percent in the target company, the announcement said.

Mounteverest's offer competes with an earlier offer by Bhushan Power and Steel Ltd along with Titanic Steel Industries and Olympian Steel Industries for 5.2 million shares, or 26 per cent, for Rs 300 rupees a share announced on Feb 9.

Under Indian takeover rules, a company that acquires 15 percent or more in another firm must make an open offer for at least 20 percent stake in the target company.

The last date for competitive bid is Feb. 28 while the offer will open on April 4 and close on April 23, it said.

At 10:30 am, the company���s shares were up 4.99 per cent at Rs 282.10 on the BSE.