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UTI Imbroglio: T Rowe Price Settles Out Of Court, Withdraws Petition From HC

The US Based Investor had moved the High Court earlier this month claiming that the 4 domestic shareholders including the SBI, LIC, PNB and Bank of Baroda were trying to stall UTI's IPO plans.

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US-based investor T Rowe Price has withdrawn its petition filed in the Bombay High Court seeking a direction to the finance ministry and the markets watchdog SEBI to prevent the four state-owned shareholders from "scuttling" UTI's initial public offering plan.

T Rowe Price, which is the single largest shareholder with 26 per cent stake in UTI Asset Management Company, had earlier this month moved the High Court seeking implementation of rules and regulations of the Securities and Exchange Board of India and extend the term of UTI's chief executive Leo Puri for another year to see the IPO through.

It can be noted that earlier this month, Puri left the company on completion of his contract, saying he did not want to lead company if the majority of the shareholders do not wanted him in. When the petition came up for hearing today before bench of justices B R Gavai and M S Karnik, the company's lawyers said the parties had arrived at a consensus out of court and would hence like to withdraw the petition.

The court accepted the statement and disposed of the petition. In its petition, T Rowe Price International had claimed the four domestic shareholders-- the State Bank of India, Life Insurance Corporation, Punjab National Bank and Bank of Baroda who equally own the remaining 74 per cent stake-- were trying to stall the third largest AMC's IPO plans.

The petition also claimed that these four shareholders were not in favour of offering a second term to Puri and sought a direction to SEBI to ask these shareholders to bring down their holdings in the fund house to 10 per cent each from the present 18.25 per cent.