Uncategorized

Bharti scrip falls another 4.54 percent, loses 13 percent in 2 days

Mumbai, Feb 16 (Calcutta Tube) Telecom operator Bharti Airtel’s scrip ended 4.54 percent lower Tuesday, taking its total loss over 13 percent in two days as investors continued to speculate on the burden a $10.7 billion acquisition plan would put on the company.

At the Bombay Stock Exchange, the Bharti scrip closed at Rs.272.45, a fall of 13.34 percent from its Friday closing figure of Rs.314.40.

The Sunil Mittal-controlled Bharti Airtel had said Monday it was in exclusive talks to acquire Kuwait telecom company Zain’s assets in Africa for $10.7 billion.

Traders had thereafter dumped Bharti stock, which ended Monday over 9 percent lower at Rs.285.40, on fears that the proposed acquisition could strain the company’s finances.

The proposed takeover will not include Zain’s assets in Morocco and Sudan, the company said about the bid — its third attempt to enter the African market after twice failing to enter into a merger pact with South Africa’s MTN.

On the other hand, trading was halted on the Zain scrip Sunday by the Kuwait Stock Exchange, till the company provided all information about the Bharti deal including implications of such a deal.

Zain, in a statement, responded that ‘after paying certain commitments, the company expects to achieve returns of up to five billion dollars’ from the deal.

Following this the suspension on the scrip was revoked and it immediately soared over 9.3 percent.

Leave a Reply

Your email address will not be published. Required fields are marked *