Equity Alert: Spice Communications up 7%, resistance seen 60 rupees

[K.Karthik Raja]

Equity Alert: Spice Communications up 7%, resistance seen 60 rupees
Spice Communications shares were up 7% on the BSE at 57
rupees amid reports Idea Cellular is likely to acquire promoter B.K.
Modi's 40.8% stake in the company for around 22 bln rupees at 77.50
rupees a share .
Another newspaper report also said Modi was seeking a valuation of
75-80 rupees a share to sell his stake.
Intraday, the share is likely to face resistance around 60 rupees
The price is nearly at a 40% premium to current levels. The Modis
have been wanting to sell their stake and this valuation is very good,
considering earlier reports where he said nothing below 60 rupees
After buying the stake from Modis, Idea will make a mandatory open
offer for 20% more in Spice. Subsequently, Idea and Spice will be
merged
So far on BSE, 5.2 mln shares of the company have been traded.

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