Deepak Fert seeks support from MCFL directors on 26% open offer

In a bid to take control of the Vijay Mallaya's fertiliser firm MCFL, Deepak Fertilisers has sought support from MCFL's independent directors on its open offer saying that rival bidder Zuari's win will help 'wilful defaulter' Mallya continue to head the firm.

Deepak Feriliser in the letter has said if Zuari's open offer succeeds then Mallya a 'wilful defaulter' will continue to be the chairman of the MCFL for five years and therefore it will be difficult for the company to access capital markets and avail loans.

The two-way battle between Deepak Fertilisers and Zuari Group for control of MCFL is further intensified. After both Deepak Fertilisers and Zuari Group have raised their open offers for acquisition of additional 26 per cent stake to Rs 288.41 crore and Rs 251.44 crore respectively.

Meanwhile, beleaguered carrier Kingfisher Airlines on Saturday said it has secured a stay from the Calcutta High Court on United Bank of India declaring the airline and its directors, including promoter Vijay Mallya, as wilful defaulters. As per the Sebi regulations, the Board of Directors of the targeted company (MCFL) needs to constitute a committee of independent directors to provide 'reasoned recommendations' on the open offers.