"International Coal Ventures Ltd (ICVL), the public sector special purpose vehicle formed in May 2009 to buy resource assets abroad, would make a counterbid to acquire Australias Riversdale Mining Ltd only if its sure of getting control, two senior officials familiar with the development said.
There is no point in having any stake less than 51%. We have already seen the kind of control Tata Steel has with 24% stake. All the participants in ICVL are keen on getting the asset and making the best use of the coal that is mined, one person said.
While ICVL, which has a capital base of Rs3,500 crore, is said to be still engaged with Citigroup, its merchant banker, on a potential approach, whats delaying the counterbid is the opinion of the five stakeholders of the deemed navaratna.
ICVL would bid for 100% of Riversdale equity. But Tata Steel with 24% stake has said it would not exit the venture. That means there is about 76% that may be tendered. Anything above 51% would make the deal comfortable for the stakeholders, a second person said."
