'No stake sale in Bhushan Steel'

NEW DELHI: In a fresh twist, Bhushan Steel management said it was not aware that Sanjay Singhal was negotiating to sell his 11% holding in the company.
A senior company executive said that according to the agreement arrived between Sanjay Singhal on one side and his brother Neeraj Singhal and father BB Singhal on the other, Sanjay is supposed to transfer his holdings in Bhushan Steel to the other faction.
As part of the settlement and division of the group's assets, Sanjay Singhal got control over Bhushan Power and Steel, while his brother Neeraj and BB Singhal retained Bhushan Steel.
But, Sanjay refused to part with his 11% stake in Bhushan Steel, the other party alleged.
Neeraj Singhal has already moved court against his brother and has secured a judgement in his favour, a source said. The court has also restrained Sanjay Singhal from selling his 11% stake in Bhushan to any outsider, the source added.
While promoter holding in Bhushan Steel is close to 64%, 53% is owned by Neeraj and BB Singhal. So, the source doubted that any large group would buy the disputed 11% stake.
The company's shares went up Rs 78 to Rs 1,436 on Wednesday. On Monday, the company's share price had jumped 46% to close at Rs 1,575.
Share prices went up on Monday on speculation in the markets that LN Mittal had evinced interest, though the company denied the reports.