Mumbai: The UK-based BP Amoco will soon make an open offer to acquire a 20 per cent stake in Foseco India at a price of Rs 226 per share even as its offer for Castrol India opened on 25 September.

The open offer follows the recent securities appellate tribunal (SAT) ruling directing the UK company to make an open offer to the shareholders of Foseco India and Castrol India. The UK company is acquiring the 20 per cent stake in Castrol India at a price of Rs 350.08 per share.

BP Amocos appeal against the SAT order on paying 15 per cent interest for the delay in making the offer is pending with the Bombay High Court. The UK company is acquiring the 20 per cent stake in Castrol India at a price of Rs 350.08 per share.

BP Amoco had bought out Burmah Castrol globally and, through this takeover, it also indirectly gained control of Castrol India and Foseco India.

The announcement of the takeover was made on 14 March 2000. Though it has made an open offer in the case of Castrol India, in Foseco's case BP Amoco had asked for an exemption because it did not intend keeping Foseco and is in the process of selling it.

It had asked for six months till 7 July 2001 to complete the Foseco hive-off globally, but the Sebi takeover panel had not granted an exemption - Sebi had directed BP Amoco to make a public announcement of the open offer within 45 days.

The offer price has to be computed by taking 14 March 2000, and the actual date of the public announcement as the reference dates. It also asked BP Amoco to pay interest at the rate of 15 per cent per annum for this period.

However, the one-member tribunal set aside the Sebi direction asking the company to pay interest for the period from 14 March 2000 for the delay. Sebi, it said, could reexamine and decide the period for which interest should be levied.

With an open offer price now pegged at Rs 226-plus interest, Foseco investors would find the offer quite attractive, market players said. In the case of Castrol, though the UK company had made the announcement for open offer, there was a dispute over the pricing.

However, the Bombay High Court last month asked the company to make the offer for Castrol India at Rs 350.08 per share. The contention of BP Amoco to acquire shares at Rs 311 was dismissed by the court.

The court ruled that the relevant date for calculating the offer price should be 13 March 2000 when BP Amoco announced its intention to takeover Burmah Castrol (the parent company of Castrol India) and not 7 July 2000 when the international takeover actually took place.

The company later give an undertaking to the court that it will now make the open offer within 21 days of the date of the judgment.