Purnendu Chatterjee is expected to submit his compromise proposal before the Haldia Petrochem board at a meeting to be held tomorrow in New Delhi, scheduled ahead of the company law board hearing for January 12 and 13. This is HPL's first board meeting after Purnendu Chatterjee's meeting with Bengal industry minister Nirupam Sen for a truce talk last month.
Will Chatterjee offer to buy out the Bengal government's 36.87% stake in HPL? And at what price? Earlier, the government had asked Purnendu to pay Rs 28.50 per share, which works out to a total of Rs 1,560 crore. Chatterjee will also indicate if he is withdrawing the CLB case during the meeting tomorrow, based on which, the Bengal government will decide whether to accept his proposal.
Chatterjee had moved the CLB challenging the sale of 7.5% in HPL to Indian Oil Corporation for Rs 150 crore. The TCG chief was not keen on bringing in IOC, a public sector company, as a strategic partner in HPL. The total equity size of HPL is Rs 1,410 crore. Of this, Bengal holds 36.87% (Rs 520 crore), The Chatterjee Petrochem Mauritius 30.7% (Rs 433 crore), The Chatterjee Petrochem India 10.99% (Rs 155 crore) and Tatas 3.19%(Rs 45 crore). The remaining 18.22% (Rs 257 crore) is held by the friends and associates of TCG.
20-Dec-05 
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