Equity Alert: Spice Comm, Idea Cellular down despite merger talks

[K.Karthik Raja]

Equity Alert: Spice Comm, Idea Cellular down despite merger talks
Equity Alert: Spice Comm, Idea Cellular down despite merger talks
MUMBAI--1:22PM--Spice Communications was down 3.7% at 56.55 rupees
on the
Bombay Stock Exchange and Idea Cellular 1.1% at 105.75 rupees on the
National
Stock Exchange, tracking the weakness in the broader market.
The stocks were down despite Spice Group Chairman B.K. Modi's
comments
the two companies are in talks for a merger or acquisition. Earlier,
there
were also reports the United Arab Emirates-based Etisalat has also
approached
Spice for a stake buy.
Modi said merger with Idea would be a "good fit" and the company's
board
would decide on a restructuring plan in 15 days.
Another media report quoted Modi as saying Spice would not settle
for any
price below 60 rupees a share.
Idea Cellular shares are seen finding support at 103 rupees next,
dealers
said.
So far today, 3.8 mln shares of Idea have been traded on the BSE
and NSE
together. The company's June futures contract was at par to the spot
with a
5% rise in open interest.
In its recent report, India Infoline recommended investors buy the
stock
with a target price of 156 rupees citing good funding for network
expansion
and launch in new circles.
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