Heard on the Street

Speculation about Spanish wind turbine manufacturer Gamesa looking to buy a majority stake in Suzlon Energy refuses to die, despite the Indian company denying it.

Though Suzlon shares gave up part of early gains after the company said the news was “speculative and inaccurate”, a section in the market is rumoured to be betting big on such a deal.

Grapevine has it that Rar(e)ing Bull and institutional investor “Kala Patthar” have been active in the stock, though critics rubbish this as an attempt by operators to boost the stock. Suzlon shares, which rose to Rs 57.30 earlier in the day, closed at Rs 55.65, up 2.6% from the previous day.

The stock fell almost 40% in 2010, even as many mid- and small-cap shares surged. Talk is that the deal may be sealed at Rs 77 a share, which includes a non-compete fee of Rs 10 a share. Company officials could not be reached for comment on the issue.