L&T arm picks up stake in City Union Bank for Rs.169

City Union Bank Ltd has announced that the Board of Directors of the Bank at its meeting held on November 30, 2006, subject to the approval of Shareholders and Reserve Bank of India approved preferential issue upto 26,65,000 equity shares of Rs 10/- each to Larsen and Toubro Ltd. The said issue would be for cash on preferential basis at a price of Rs 169/- per share (including a premium of Rs 159/- per share) which is higher than the price determined in accordance with the SEBI (Disclosure and Investor Protection) Guidelines, 2002 on preferential issues. Further it was decided to convene an Extra-Ordinary General Meeting to obtain the approval of shareholders with regard to the above on December 29, 2006.

Source : Equity Bulls

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