Bharti scrip falls another 4.54 percent, loses 13 percent in 2 days (Lead)
February 16th, 2010 - 7:14 pm ICT by IANSMumbai, Feb 16 (IANS) 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Following this the suspension on the scrip was revoked and it immediately soared over 9.3 percent.
- Bharti scrip sinks 3.19 percent in afternoon trade - Feb 16, 2010
- Bharti starts 40-day talks to acquire Kuwait's Zain - Feb 15, 2010
- Zain confirms nod to Bharti's offer for African telecom assets - Mar 25, 2010
- Kuwait's Zain approves Bharti's bid to connect with Africa (Lead) - Mar 25, 2010
- India's Bharti makes grand entry into Africa's telecom market - Mar 31, 2010
- Kuwait's Zain accepts Bharti's offer for African assets - Mar 24, 2010
- Africa deal makes Bharti world's 5th largest telecom firm - Jun 08, 2010
- Bharti to ink final agreement with Kuwait's Zain Tuesday - Mar 29, 2010
- Bharti shares open strong after Zain Africa deal - Mar 31, 2010
- Bharti starts fund-raiser to buy Zain's African assets - May 27, 2010
- Bharti ties up $8.3 bn deal with Kuwait's Zain Telecom - Mar 21, 2010
- Bharti is world's 5th largest telecom firm after Africa deal (Roundup) - Jun 08, 2010
- 100 million African subscribers in next two years: Airtel - Nov 16, 2010
- Bharti Airtel quarterly net income decreases 31.46 percent - May 05, 2011
- Bharti Airtel signs network expansion deal with Huawei - Jun 01, 2011
Tags: acquisition plan, airtel, assets, billion dollars, bombay stock exchange, commitments, fears, five billion, kuwait stock exchange, merger, morocco, mtn, pact, scrip, south africa, sunil, takeover, telecom company, telecom operator, third attempt