Plea to freeze pay-out of VST shares

By Our Special Correspondent

MUMBAI, JUNE 8. ASK-Raymond James, Manager to the Bright Star offer to acquire 30 per cent equity of VST Industries, today appealed to the Securities and Exchange Board of India (SEBI) to freeze pay-out of VST shares on ``suspicious movements in price and trading volumes.''

On the last day of the week, Friday, some 1.84 lakh shares of VST have been traded on the Bombay and National stock exchanges. ``Neither Bright Star Investments nor any of its affiliates have purchased any of these shares,'' stated Mr. John Band, Chief Executive Officer of ASK-Raymond James, here today. Over the last three days 4.11 lakh shares have been acquired and these will not be tendered to either offer.

``As you now believe that there are manipulative motives on the part of the parties concerned by raising the price artificially and thereby discouraging investors from tendering in the Bright Star offer, there are only two possible alternative explanations. One is that the buyers have some insider knowledge of forthcoming events unknown to us - and the other is that the buyers are quite mad,'' Mr. Band wrote to Mr. D. R. Mehta, Chairman, SEBI, today.

``In order that the opportunity to catch wrongdoers is not wasted by lapse of time, we request that SEBI orders the stock exchanges to freeze pay-out of VST shares to brokers pool accounts for purchases made during the three days until the bona fides of the buyers can be established beyond doubt. In the event that such bona fides are not established, we recommend that the stocks concerned be auctioned and the proceeds credited to the compensation funds of the exchanges,'' the letter to SEBI chairman added.

The closing price of VST shares on the BSE has increased to Rs. 150.95 on June 7 from Rs. 144.25 on June 6 and Rs. 134 on June 5. However, the share of VST today closed for the week at Rs. 149.70 on the BSE.

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