Saturday, November 24, 2001
THE SECURITIES and Exchange Board of India on Friday said
it was yet to take a final decision on the open offer for
Hughes Software Systems, a subsidiary of Hughes Network Systems.
"We are examining the reply from HSS," Sebi sources
said here.
Sebi had asked HSS to explain why the company should be exempted
from making an open offer after Ecostar of US acquired Hughes
Electronics, HNS parent, from General Motors.
HSS, before Sebi seeking reply, in early November had informed
the exchanges that the question of an open offer did not arise
as "there is no agreement or intention to acquire"
the Indian shares of Hughes Software.
Since the amalgamation was not an indirect acquisition of
Hughes and there is no change in management control, no public
offer is likely to be made," the company had said in
a notification.
EcoStar Communication agreed to acquire Hughes Electronics
from General Motors in a cash and stock deal valued at $26
billion. Hughes Electronics hold 55.6 per cent in Hughes Software.
According to the Sebi takeover code, any takeover that leads
to a change in management control must necessarily be followed
by an open offer to buy at least 20 per cent of the voting
capital of the company from its existing shareholders.
Last updated : February 2, 2004
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