Have no idea what the hell this means so here goes. Maybe someone can explain.
Five Air India bidders rejected
The Hindu - India; Dec 16, 2000
BY OUR SPECIAL CORRESPONDENT
NEW DELHI, DEC. 15. The Disinvestment Ministry has rejected five bidders for strategic partnership for Indian Airlines (IA) and Air India (AI) after completion of scrutiny of bids today. In the case of AI, three parties, including the Indian Pilot's Guild, were dropped while two bidders were disqualified from the IA bid.
The shortlisted bidders have now been asked to submit technical bids by January-end and to start the process of due diligence immediately thereafter. The Hindujas, Tata-Singapore Airlines and Videocon are among the major contenders for becoming strategic partners either in Indian Airlines or Air India or both, according to sources in the Ministry. These sources indicated that the five bidders were dropped for not fulfilling all conditions laid down by the Government, including the criterion of having a combined net worth in excess of Rs. 1,000 crores or $ 250 million.
The sources also indicated that around eight bidders were in the race for buying 40 per cent stake in AI while another five were seeking 26 per cent in IA.
On the reported suggestion from AI's global advisors that fresh bids be invited, the sources said the response had been very good and there was no such consideration.
The Government would now allow identified parties to proceed with due diligence by allowing entry into the data room along with obtaining necessary information from the bidders. On the rejection of bid of the Indian Pilot's Guild, sources said there was no documentary evidence that the Guild had the support of all the employees of Air India.
The Guild also failed to submit an audited balance sheet with the bid document, a prerequisite for taking part in the bidding process.
The Government also rejected the Guild's contention that it was capable of raising the stipulated Rs. 1,000 crores from their own resources including withdrawal from their provident fund accounts.
As per Government regulations, withdrawals for investment purposes like purchase of equity shares was not a ground for permitted withdrawal of the fund.
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