Date:01/04/2005 URL: http://www.thehindubusinessline.com/2005/04/01/stories/2005040101990200.htm

Back Shareholders angry over BPCL-Kochi Refineries merger swap ratio

Nilanjan Dey
Kohinoor Mandal

Kolkata , March 31

A SECTION of minority shareholders of Kochi Refineries Ltd, led by the Kochi Refineries Investors' Forum, is aggrieved over the declared swap ratio of 9:4 for the company's proposed merger with Bharat Petroleum Corporation Ltd.

The swap ratio has allegedly failed to consider the relative performance of the two companies during the nine-month period ended December 2004. BPCL announced the merger swap ratio on January 18, 2005.

At the heart of the allegation is the difference between the EPS numbers of the two companies. Kochi Refineries had earnings per share of Rs 44.57, while that for BPCL was Rs 20.48.

Sources close to the Forum indicate that the body is in the process of moving the Kerala High Court against the scheme of merger. The merger swap ratio is said to be biased in favour of BPCL; the minority shareholders of Kochi Refineries have not been treated by BPCL in a positive manner, they allege.