Equity Alert: Spice Comm may rise on report Modis plan stake sale

[K.Karthik Raja]

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Equity Alert: Spice Comm may rise on report Modis plan stake sale
MUMBAI--9:25AM--Shares of Spice Communications could rise around
2-3% on
a newspaper report the B.K. Modi group is set to reduce its
shareholding in the
company, dealers said.
The group may either completely exit, or there may be dilution of
stake by
the Modis and partner Telekom Malaysia, The Economic Times reported
today.
The B.K. Modi group holds 40.8% in the company and Telekom
Malaysia 39.2%.
Spice Communications' board will discuss these options when it
meets on
Jun 2, the report said.
The Modis have been in talks with several players in the past two
months,
including UAE's Etisalat and AT&T, the report said.
However, dealers remain sceptical about any sharp gains in the
stock as it
is not the first time that there is speculation about a sell out by
the Modis.
The stock had ended up nearly 6% on May 5 amid reports Telekom
Malaysia
intends to acquire controlling stake in the company.
Technical analysts said the stock had shown a breakout in the last
few
sessions, and have a target of 52 rupees in the next 1-2 sessions.
Tuesday, the stock ended up 1.4% at 49.45 rupees on BSE.