Reliance bids for 20% of BSES

Vol 4, PW 8 (24 May 00) News in Brief

Reliance has surprised markets by announcing a bid to acquire 20% of the blue chip power company Bombay Suburban Electricity Supply (BSES).

On 19th May, Reliance, which already owns 14.82% of BSES, offered a price ofRs234 ($5.44) per share. After the announcement BSES shares closed at Rs255 ($5.93) on the Bombay Stock Exchange.

"The offer represents a strategic step in our pursuit of attractive growth opportunities in the power sector," said Anil Ambani, Managing Director, Reliance Industries, "We believe this step is in the best interests of both companies." RV Shahi, Chairman of BSES, said there was "no reason to panic" at the Reliance offer.