Prudent Arc Limited and a US-based fund have submitted bids for Punj Lloyd Limited (BSE:532693), setting up a contest for the takeover of the financially stressed construction company whose founder Atul Punj offered a settlement to bankers last month to reclaim the company from them, according to several people aware of the matter. The two new contenders are yet to clear legal scrutiny for conformity with the bidding guidelines, according to the people. Bankers are said to be evaluating all three proposals. The bids from Prudent ARC and the US-based fund are said to include some upfront payments and staggered repayments of outstanding dues worth INR 130 billion. The US-based fund is said to be backed by a group of engineering companies. Prudent ARC had not responded to ET's queries as of press time.