Abstract

The case “The tug of war over Gesco Corporation”, traces the various developments that had taken place in the tug of war over Gesco Corp. In October 2000, Abhishek Dalmia made an open offer for 45% stake in Gesco Corp at Rs. 27 per share. Since then, the battle between the Sheths-the promoters of Gesco Corp and the Dalmias had strengthened. The late 2000, saw both the sides making offers and counter offers. They had reached a stage where both the groups were fighting a losing battle. The price of the share went up to Rs. 45 per share with the Dalmias’ making the last call. In January 2001, good sense prevailed on both the sides and they reached an agreement. By the agreement, the Dalmias’ sold their 10.5% stake in Gesco at Rs. 54 per share. With this, one of the most engrossing corporate battles had come to an end.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Corporate takeovers.

Keywords

The tug of war over Gesco Corporation, October 2000, Abhishek Dalmia , 45% stake, Gesco Corp ,Rs. 27 per share, Sheths-the promoters , Dalmias, 2000, Rs. 45 per share , January 2001, agreement, the Dalmia,10.5% , Rs. 54 per share