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Mumbai, June 21 (PTI) In an unusual development, Bank of Rajasthan''s management today called off an Extraordinary General Meeting to discuss merger with ICICI Bank following a court stay, but shareholders went ahead with the voting. Minutes before the EGM was to start, the Company Secretary announced that the BoR''s Managing Director had received a fascimile from an advocate in Kolkata stating that the meeting to consider the merger was stayed by a civil court there. Incidentally, BoR employees too have taken to the streets against the merger. The management, after consulting lawyers, cancelled the EGM and the executives left the venue. Investors, numbering about 1,000, livid at the development started raising slogans and demanded to see the original court order, which the management said it did not possess, a shareholder said. Following the high drama, shareholders decided to hold the meeting on their own. Advocates opined that it was legal for them to hold the meeting, which was chaired by one of the shareholders, D V Lakhani. "One of the shareholders has got a court stay against conducting the EGM (which was called to seek shareholders approval for the merger). Now the shareholders are meeting to discuss how to proceed with the agenda," Bank of Rajasthan Executive Director K K Sharma told PTI. Simultaneously, ICICI Bank held its EGM in Vadodara. ICICI Bank last month agreed to take over Bank of Rajasthan in a share-swap deal that valued the Udaipur-based bank at over Rs 3,000 crore. The share swap ratio was fixed at one ICICI Bank share for every 4.72 shares of BoR. Both banks can proceed with the merger only if the shareholders approve the swap ratio. However, the shareholders cast their votes. One of the shareholders, V N Prasad, said that the ballots would be scrutinised by two appointed scrutinisers appointed by the chair, after which it would be submited to the RBI and stock exchanges. It was not clear whether the Tayal family, which holds controlling stake and has signed a deal with ICICI Bank for sale of its shares, was represented at the EGM. BoR shares were up 1.54 per cent at Rs 174.50 a share after hitting a 52-week high of Rs 178.80, while ICICI Bank closed at Rs 900.95, up 3.89 per cent, after touching a one-month high of Rs 908.80.
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