Heidelberg stake surrender may not hit Mysore Cements as yet

Merckle family had been forced to pledge their stake in Heidelberg Cement to a consortium of 30 banks, led by Commerzbank, Deutsche Bank and Royal Bank of Scotland, to raise funds to keep a few investment companies, owned by the family, afloat. Germany's Merckle family may have to surrender a 53% stake. It's not clear what impact this would have on Mysore Cements, in which it holds a 54.89% stake. The banks demanded the stake in return for a $971-million refinance package to the investment firms. 
 
The move will not have any material impact on Mysore Cements, at least for now since the shares are pledged but there had been no transfer of ownership. But they said things could change if the banks offload the pledged shares to a strategic investor. In such a scenario, the buyers of Heidelberg Cement's stake will have to make an open offer for Mysore Cement's local investors, since more than a 15% stake in the Indian company will change hands.