New Delhi: India's largest state-run power equipment maker Bharat Heavy Electricals Ltd is looking for a legal consultant for the planned amalgamation of engineering, procurement and construction company Bharat Heavy Plate and Vessels Ltd with itself, media reports said Monday.
"BHEL intends to engage a law firm for providing legal services in connection with merger of Bharat Heavy Plate and Vessels Ltd (BHPV) with itself," BHEL said in the request for proposal for the engagement of law firm.
According to the proposal, the law firm should have successfully executed at least one assignment of amalgamation or merger of Central Public Sector Enterprises (CPSEs) in the last five fiscals.
BHEL said that the company will award the contract to the legal firm whose bid will be the lowest and whose proposal is found to be technically and commercially acceptable.
It also added that throughout the contract, the total lump sum price quoted by the bidder shall remain the same.
The company holds the right to accept, modify or reject the recommendations of the advisor in all matters related to the process, including the bid price.
The proposed amalgamation of Bharat Heavy Plate and Vessels with BHEL will finally be discussed at the latter's board meeting on May 23.
Once the proposal of the merger gets board's nod, a note will be sent for the Cabinet's approval.
Earlier, in 2008, Prime Minister Manmohan Singh announced the amalgamation of ailing Bharat Heavy Plate and Vessels with BHEL.
In the same year, the company was made subsidiary of BHEL contrary to the Prime Minister's announcement.
Shares of BHEL closed at Rs 206.45, up 2.51%, on the Bombay Stock Exchange today.