Buyout rumours boost Cairn stock
Cairn India's stock touched an all-time high of Rs 248 on Friday on talk that Lakshmi Mittal is likely to make a bid for the company.
By TNN |
MUMBAI: Cairn India’s stock touched an all-time high of Rs 248 on Friday on talk that Lakshmi Mittal, the steel tycoon, is likely to make a bid for the company. On the BSE, shares of Cairn India closed at Rs 247, up Rs 4 or 1.6% over the previous day’s close. The stock has gained Rs 24 or 11% in the past one week and Rs 39 or 19% over the past one month on takeover talks.
Shares of its parent company, Cairn Energy, which was included in the FTSE 100 this week, was also trading at its peak for 3,039 pence, up 39 pence or 1.4% over the previous day’s close at the LSE. Cairn Energy holds 69% in the Indian arm Cairn India.
An analyst with an international research firm based in Mumbai said, “Cairn hit a record today on continuing hopes of bids and high oil prices. L N Mittal and BP are believed to be in talks to buy out Cairn India operations from its parent company. For Mittals, it makes sense to buy out Cairn. Not only will it help Mittals to make a foray into exploration business, but will also provide them a world-class discovered asset in Rajasthan. Besides, it will bring India’s biggest foreign direct investment in the energy sector”.
Shares of its parent company, Cairn Energy, which was included in the FTSE 100 this week, was also trading at its peak for 3,039 pence, up 39 pence or 1.4% over the previous day’s close at the LSE. Cairn Energy holds 69% in the Indian arm Cairn India.
An analyst with an international research firm based in Mumbai said, “Cairn hit a record today on continuing hopes of bids and high oil prices. L N Mittal and BP are believed to be in talks to buy out Cairn India operations from its parent company. For Mittals, it makes sense to buy out Cairn. Not only will it help Mittals to make a foray into exploration business, but will also provide them a world-class discovered asset in Rajasthan. Besides, it will bring India’s biggest foreign direct investment in the energy sector”.
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