Wednesday, February 18, 2009

Gammon India finds takers on Maytas Infra takeover talk

17 Feb 2009, ET Bureau


MUMBAI: Investors have reacted positively to reports that Gammon India is in race to take over Hyderabad-based Maytas Infrastructure.
According to analysts, Gammon India will benefit a lot by acquiring Maytas, thanks to its several projects inside and outside the state. “This is an easier and quicker route to get a slice of the action and grow,” pointed an industry analyst.

He added that financial institution IL&FS too is joining the trio and is in talks for the purpose. IL&FS owns a part of the pledged shares of the Rajus. Sources, however, said that the suitors are seeking indemnity from actions taken by the previous management before they take the plunge.

According to sources, the suitors are seeking indemnity from actions taken by the previous management before they take the plunge.

Gammon India which is the process of executing many contracts in the state but had hogged the limelight two years ago when an under construction flyover had collapsed in Hyderabad is being suported by two small time local players in this endeavour.

Sources say that these two players: Ritwik Projects and SEW Infrastructure (formerly SEW Constructions) are jointly trying to acquire Maytas with Gammon for the time being in the background.

Gammon India, a very old construction company that changed hands a few years ago is presently on an aggressive mode. It is executing many road and irrigation projects in the state.

However, analysts averred that the central government could officially supersede the board of directors of Maytas and allow the new management to negotiate with the bidder. This would be in the same pattern as is being envisaged for Satyam.

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