London: Investors in Essar Energy, controlled by Indian billionaires Ruia brothers, have reportedly hired law firm Skadden Arps in an attempt to prevent taking the LSE-listed oil company private "on the cheap".
"Investors in Essar Energy have hired law firm Skadden Arps to attempt to stop the billionaire Ruia brothers from taking the Indian oil company private on the cheap," Daily Telegraph reported.
According to the daily, the Indian family, through Essar Global, has been trying to buy the 23 per cent stake in Essar Energy and delist the business.
"But a special committee of the Association of British Insurers has been formed to fight the takeover, believed to be made up of blue chip investors including Standard Life and Capital Group," the newspaper said.
"The investors argue that the offer is too cheap, and does not reflect the long-term value of the company," it said.
The committee - whose members own approximately 9 per cent of Essar Energy's shares, equivalent to 35 per cent of the free float - has hired Skadden Arps to advise it on a range of possible actions that might be done to seek to prevent a delisting, the report said.
The committee has written to Prashant Ruia, chairman of Essar Energy, asking the company not to delist from the London Stock Exchange unless more than 50 per cent of free float investors accept the 70 pence-a-share offer, it added.
The group has also written to David Lawton, head of markets at the UK's Financial Conduct Authority (FCA), to make the regulator aware of the situation, it added.