Stock Surge Hinders Tide Water Takeover

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The head of Tide Water Oil said last week that a surge in the companys stock price had helped it avoid a hostile takeover by Standard Greases and Specialities.

Tide Waters stock shot up 66 percent during the last week of 2015 to reach Rs 29,600 (U.S. $444.50) per share, an all-time record. Standard Greases and three investment firms made an open offer of Rs 16,632 in September.

I am very happy to tell you that I am quite, I was confident earlier also, [there] is no chance of changing the management in totality, Tide Water Chairman Kallol Datta told Kolkata television station CNBC-TV18 Dec. 30, according to an interview transcript published by Indian media.

Standard Greases offer expired Dec. 30, and Datta noted that Standard Greases had increased its stake in Tide Water to 29 percent by that date. When the bid was launched, Standard Greases and Janus Consolidated Finance already held a 24.93 percent stake. They had aimed to wrest control of the company from Andrew Yule, a diversified Kolkata-based firm that held 26.22 percent.

Datta said Yule will retain control, partly because it has the support of two government-owned insurance firms that hold a combined 11 percent of the company.

Standard Greases could not be reached for comment.

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