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Shares in India's top refiner Shree Renuka Sugars jumped as much as 7.3 percent on Friday on a newspaper report talks to buy Brazilian Equipav has fallen through with a slide in sugar prices, dealers said.Business Standard newspaper reported on Friday Renuka has revised its offer in tune with volatility in prices, reflected in the benchmark New York futures which have halved in the past few months from a 29-year peak of 30.40 cents per lb in February.Analysts and dealers view this move as positive for Renuka as concerns of assuming huge debt in the books were seen receding."If they (reports) are true, that much less debt will be there in the balance sheet," said Bhavesh Gandhi, analyst at India Infoline."And the company will have more resources to focus better in the domestic business. This, if true, will definitely reduce the debt burden," said Gandhi, who has a 'market performer' rating on the company with price target of 69 rupees.Sugar and ethanol maker Equipav has begun parallel talks with two alternative bidders - Bunge Ltd and Hong Kong-based trading firm Noble Group- the paper said, citing three sources involved in the deal.Reuters could not reach the company's managing director Narendra Murkumbi. Attempts to reach other senior officials of the company also failed.In February, Shree Renuka had announced intention to acquire a controlling 51 percent stake in the diversified sugar firm from Brazil, the world's biggest producer.At 1.14 p.m., shares were up 6.44 percent at 58.65 rupees in a firm Mumbai market.(Reporting by Indulal P.M., Swati Pandey and Ratnajyoti Dutta; Editing by Harish Nambiar)(For more business news on Reuters India click http://in.reuters.com)
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