Equity Alert: M&M unchanged on news co to buy Italy's Engines Engg

[K.Karthik Raja]

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Equity Alert: M&M unchanged on news co to buy Italy's Engines Engg
MUMBAI--11:50AM--Mahindra & Mahindra did not react to the news
that the
company has signed a pact to acquire Italy's Engines Engineering, a
motorcycle design and development firm, for an undisclosed sum.
The stock was down over 1% at 561 rupees.
"There is nothing significant that comes out of the acquisition
anytime
soon. Also there is no clarity how relevant it will be to M&M's
existing
businesses since it (acquired firm) is a motorcycle design firm," an
analyst
said.
He does not see any synergy from the acquisition over the next
three to
four years.
The stock was down as sentiment for the sector is weak on worries
of
rising interest rates, dealers said.
Angel Broking has a 'buy' rating on the stock with a price target
of 731
rupees.
So far 162,747 shares have been traded on NSE. May futures of the
stock
were at 1-point premium to the spot, with 0.5% rise in open interest.