Market Eye: India's Mangalore Chem surges on takeover speculation

Zuari Agro Chemicals

11/07/2013 07:25

* Shares in Mangalore Chemicals & Fertilizers Ltd (MCF) 
 MNGL.NS  surged 10 percent to a record high, hitting their 
maximum daily limit for a second consecutive session, on 
expectations the company is becoming a target for a takeover. 
* Zuari Fertilisers, a unit of Zuari Agro Chemicals Ltd 
 ZUAR.NS , bought a 3.49 percent stake in MCF in open markets 
according to bulk trade data from the NSE Exchange on Wednesday, 
taking its total stake in the company to 13.2 percent. 
* Meanwhile, Deepak Fertilisers and Petrochemicals Corp Ltd 
 DPFE.NS  has recently increased its stake in MCF to nearly 24.5 
percent stake. 
* MCF shares have surged 72 percent since the start of June, 
compared with a 2.8 percent fall in the NSE index  .NSEI  during 
the same period on speculation that Zuari Agro and Deepak are 
competing to buy the company. 
* MCF is controlled by billionaire Vijay Mallya who also owns 
Kingfisher Airlines Ltd  KING.NS  and recently sold a majority 
stake in United Spirits Ltd  UNSP.NS  to Diageo Plc  DGE.L  
 
 (abhishek.vishnoi@thomsonreuters.com /; 
abhishek.vishnoi.thomsonreuters.com@reuters.net)