Buzz over Japan's Daido stake buy lifts Sunflag Iron 12%

Operators have been trying to drive up the share price of iron and steel product manufacturer Sunflag Iron & Steel by spreading rumours that Japan-based Daido Steel is looking to acquire a stake in the Indian company.

Sunflag Iron had signed a technical support agreement with the Japanese company in November 2010 to evaluate the Indian company's capital expenditure layout and diversification into special products.

Officials at Sunflag Iron denied any such development in the company. "We're not talking to anyone regarding a stake-sale," said Mukesh Parakh, company secretary & compliance officer, Sunflag Iron & Steel. Shares of Sunflag Iron ended 12% higher at 31.05 on the BSE on Friday.

Contributed by Shailesh Menon