>GREAT OFFSHORE (ICICI DIRECT)

Open offer battle draws to a close with ABG exiting its stake...

■ Bharati revises bid to Rs 590 per share: The open offer battle came to an abrupt end with ABG Shipyard (ABG) exiting its stake in Great Offshore Ltd (GOL) by offloading its 8.27% stake in GOL at an average price of Rs 576 per share. Meanwhile, Bharati Shipyard (BSL) has revised its open offer price to Rs 590 per share for acquiring an additional 20% stake in GOL. Both open offers i.e. of ABG as well as BSL will run simultaneously from December 3 to December 22 and shareholders can tender their shares to either of them. ABG’s open offer price of Rs 520 per share is irrelevant now for obvious reasons but BSL’s offer price at Rs 590 is 15% more than the current market price. However, with an acceptance ratio of 25.8%, only one-fourth of the shares tendered would be accepted in the open offer. Hence it would be prudent for investors to sell their shares in the open market as our target price of Rs 429 is much lower than the current market price of GOL and the market price could correct further post the conclusion of the open offer.

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