The Hindu : Two mediators to solve Bajaj family dispute

Online edition of India's National Newspaper
Wednesday, Jul 17, 2002

Business

Business

Two mediators to solve Bajaj family dispute

MUMBAI JULY 16. The Bajajs, the prominent business family, are taking the services of two mediators to try to bring about an amicable solution for the disagreement between Rahul Bajaj, Chairman of Bajaj Auto, and his younger brother Shishir Bajaj, industry sources said.

The two family friends who are mediating have been given certain terms of reference for settling the two-year old dispute, they said.

When contacted, Mr. Rahul Bajaj declined to comment on any development while repeated attempts to speak to Mr. Shishir did not yield any results.

"The mediators have been given terms of reference and the stalemate may continue for the next two to three months till a solution, even if the family is to split, is reached,'' the sources said.

There are at least ten issues for the mediators to work upon including the one over the pricing of the share of Bajaj Auto, the flagship company of the Rs. 6,000 crore Bajaj group in which Mr. Shishir holds a little less than one per cent stake against 1.05 per cent held earlier. There have been discussions but nothing has been put on paper as yet, the sources added.

One of the most important issues for the mediators to work upon is the valuation of Mr. Shishir's stake in Bajaj Auto based on the company's net worth, the prevailing price or average price of two years or 12 months or under Securities and Exchange Board of India guidelines, the sources added.

The mediators will also have to value the entities headed by Mr. Shishir — Bajaj Sevashram, Bajaj Hindustan and others — in which Mr. Rahul and his three cousins hold substantial stakes.

Mr. Rahul, during the three months ended June raised his stake in Bajaj Auto from 2.14 per cent to 2.28 per cent while his three cousins, Shekhar has a 0.71 per cent, Niraj has a 1.2 per cent and Madhur has 0.77 per cent in the company.

On the other hand, Mr. Shishir holds less than one per cent as against 1.05 per cent three months ago while the group firms managed by him — Bachraj & Co and Bajaj Sevasharam — have a 1.76 per cent and 2 per cent equity stake in the Pune-based two wheeler company.

Mr. Rahul last month admitted that the family has nearly split with Mr. Shishir demanding his share.

Mr. Shishir in a statement had said he wanted to assess the turn of events that had taken place before reacting to the news of his possible separation from the family. — PTI

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