In what looks like a poison-pill strategy to thwart a hostile takeover bid, the Sanjay Dalmia-led management of cigarette maker Golden Tobacco Ltd (GTL) on Monday decided to carve out four of the company’s five key properties—two in Mumbai and one each in Hyderabad and Guntur—for real estate development.
Poison pill is the name given to any strategy that is designed to make a hostile takeover target less attractive to the potential acquirer.
In a notice to stock exchanges, GTL said on Monday it could sell or jointly develop three of its properties—in Guntur, Hyderabad and at Marol in Mumbai’s suburbs. The fourth and by far the most valuable one, according to GTLs managing director J.P. Khetan—the companys 7.7 acre factory in Mumbais Vile Parle area—would not be sold; the company would launch a real estate project there on its own or with partners.
More : livemint.com
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