Ratan Tata May Hike Stake In Tata Steel

Ratan Tata is on the prowl yet again and this time he wants to tighten the grip on group companies. Sources say that the Tatas plan to hike stake in Tata Steel by 10 per cent and the group is debating whether to take the creeping acquisition route or if the steel maker will go for preferential allotment of shares.

In last one year, Tata Sons has increased it''s stake in Tata Steel by about seven per cent to over 33 per cent. This was of course due to the Mittal effect just before Mittal acquired Arcelor. Looks like the M&A season is not yet over in the metal space, and the ghosts of hostile bids continue to haunt the industry..

No wonder then that the metal biggies have to keep assuring the shareholders of the promoter holdings and have to make sure that they are safe from predators..

Promoter holding is at about 44 per cent, we are safe, said Sajjan Jindal, VC & MD, JSW Steel. The Tatas may not be forthcoming but one thing is clear that they don''t want to take any chances. And that''s why the ambitious plan to hike stake in Tata Steel to a controlling majority of around 51 per cent.