Top Story

e4m_logo.png

Home >> International >> Article

B4U accuse Zee of hostile take over bid

12-April-2001
Font Size   16
B4U accuse Zee of hostile take over bid

B4U Television Networks has said that the reported acquisition by Zee Network of a substantial block of B4U shares `secretly’ and without the formers knowledge amounted to a backdoor, hostile takeover bid by Zee Network. B4U plans to send a legal notice to Zee for not having intimated either the company or the regulatory authorities about this development.

Ravi Gupta, CEO of B4U said Zee’s public statement on Tuesday that it had acquired a 15 per cent stake in B4U’s equity through stock broker Ketan Parekh was the first he had heard about the deal. In a statement issued on Wednesday evening, Zee reiterated its earlier statement that it had acquired a 15 per cent stake in B4U.

When it was pointed out to Gupta that Zee had said it had acquired B4U’s equity from Ketan Parekh to whom Zee had lent money, he conceded that the stock broker did have a substantial holding in B4U through private placements. This, however, did not exceed five per cent, making it impossible for Zee to acquire a 15 per cent stake.

Gupta also revealed that B4U had not taken any decision to dilute the original shareholding pattern, and termed Zee’s bid as “violative of legal norms and “unethical”.

He also said the company would be pressing for regulatory action, but did not specify what steps it would be taking.

According to Gupta, B4U’s television and broadcasting business in India has been shifted to B4U Television Networks, in which Bharat Shah has no stake.

This company in turn is promoted by the B4U International Holdings in which only steel magnate L N Mittal, Gokul Binani and film distributor Kishore Lulla are partners, he said.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Mumbai was chosen in keeping with the company's focus on featuring their proprietary technologies over undiscovered markets like South Asia

The campaign, featuring brand ambassador Farhan Akhtar, exhorts consumers to showcase their achievements through the walls of their homes.

We list a few important stories that you may have missed in the week gone by