Sensex works its way up again
The Sensex, which had almost evened out for the day, rose once again in mid-afternoon trade. HDFC kept firm ahead of the results today. Private sector banks were in demand. Index heavyweight Reliance Industries (RIL) also firmed up, while L&T surged.
At 14:46 IST the Sensex was up 49 points, at 14,090. It had reached 14,043.54 at 14:06 IST, just 2.30 points more for the day.The market-breadth turned negative after being positive earlier in the day.
Sesa Goa spurts on buzz of Arcelor-Mittal eyeing Mitsui stake
Iron ore exporter Sesa Goa jumped 8.52% to Rs 1783, amid reports that Arcelor-Mittal is a prime contender for Mitsui’s stake in the company.The stock also surged to an all-time high of Rs 1805.45 in the afternoon session.As many as 4.06 lakh shares changed hands in the counter on BSE.
Reports said only half of the 12 bidders, who had entered the fray in the first round, still retain interest in the company. The other three in the race include mining giants Rio Tinto, CVRD and BHP Billiton.
Japan’s Mitsui & Company had given time till 16:00 hours on 19 February, for submitting bids in the second round. The present bids are in the range of Rs 2500 per share, valuing the company (Sesa Goa) at Rs 8000 crore. The winning bidder will have to make an open offer for to acquire another 20% stake as per Sebi rules.
Recently, there were reports that L N Mittal's Arcelor-Mittal had submitted a non-binding bid for a controlling stake in the company. The scrip, amidst all such reports, had spurted in the past few weeks, partly due to hopes of higher iron ore prices in 2007, and partly due to reports that had first surfaced on 22 December 2006 that Japan’s Mitsui & Company had put its 51% stake on the block.
From Rs 1186.35 on 20 December 2006, it surged to Rs 1702.20 by 15 January 2007. Here, it slipped to Rs 1643.05 by 23 January 2007 on profit-booking.
On 26 December 2006, Japan’s Mitsui & Company declined to comment on an Indian newspaper report that it plans to sell its entire 51% stake in Sesa Goa. Mitsui said it was not in a position to comment on market rumours.
Also there were reports about Sesa Goa planning to start negotiations on annual price contracts with major global customers from February 2007. Sesa Goa is likely to ask for a 9.5% increase in iron ore prices on annual supply contracts, reports speculated. There was no clarification from the company in this regard, thus far.
It may be recalled that Brazil's CVRD, the world's biggest iron ore producer, last month, struck an agreement with Chinese steel mills for the 9.5% upward benchmark (iron ore fines) price revision for 2007-08 (April-March). The ore price had increased by 18% in 2004-05 and a record hike of 71% was extracted by exporters from steelmakers for 2005-06.
Sesa Goa supplies iron ore to China, Japan and Europe and is also the sole supplier of ore to Pakistan Steel Mill, Pakistan’s only steel manufacturing unit. The company’s annual exports amount to around 5 million tonnes out of Marmagao, Chennai and Paradip ports.
Sesa Goa reported 18% fall in net profit to Rs 25.66 crore for Q2 September 2006, versus Rs 31.28 crore in Q2 September 2005. Net sales rose 37.6% to Rs 226.24 crore (Rs 164.4 crore).
At 14:46 IST the Sensex was up 49 points, at 14,090. It had reached 14,043.54 at 14:06 IST, just 2.30 points more for the day.The market-breadth turned negative after being positive earlier in the day.
Sesa Goa spurts on buzz of Arcelor-Mittal eyeing Mitsui stake
Iron ore exporter Sesa Goa jumped 8.52% to Rs 1783, amid reports that Arcelor-Mittal is a prime contender for Mitsui’s stake in the company.The stock also surged to an all-time high of Rs 1805.45 in the afternoon session.As many as 4.06 lakh shares changed hands in the counter on BSE.
Reports said only half of the 12 bidders, who had entered the fray in the first round, still retain interest in the company. The other three in the race include mining giants Rio Tinto, CVRD and BHP Billiton.
Japan’s Mitsui & Company had given time till 16:00 hours on 19 February, for submitting bids in the second round. The present bids are in the range of Rs 2500 per share, valuing the company (Sesa Goa) at Rs 8000 crore. The winning bidder will have to make an open offer for to acquire another 20% stake as per Sebi rules.
Recently, there were reports that L N Mittal's Arcelor-Mittal had submitted a non-binding bid for a controlling stake in the company. The scrip, amidst all such reports, had spurted in the past few weeks, partly due to hopes of higher iron ore prices in 2007, and partly due to reports that had first surfaced on 22 December 2006 that Japan’s Mitsui & Company had put its 51% stake on the block.
From Rs 1186.35 on 20 December 2006, it surged to Rs 1702.20 by 15 January 2007. Here, it slipped to Rs 1643.05 by 23 January 2007 on profit-booking.
On 26 December 2006, Japan’s Mitsui & Company declined to comment on an Indian newspaper report that it plans to sell its entire 51% stake in Sesa Goa. Mitsui said it was not in a position to comment on market rumours.
Also there were reports about Sesa Goa planning to start negotiations on annual price contracts with major global customers from February 2007. Sesa Goa is likely to ask for a 9.5% increase in iron ore prices on annual supply contracts, reports speculated. There was no clarification from the company in this regard, thus far.
It may be recalled that Brazil's CVRD, the world's biggest iron ore producer, last month, struck an agreement with Chinese steel mills for the 9.5% upward benchmark (iron ore fines) price revision for 2007-08 (April-March). The ore price had increased by 18% in 2004-05 and a record hike of 71% was extracted by exporters from steelmakers for 2005-06.
Sesa Goa supplies iron ore to China, Japan and Europe and is also the sole supplier of ore to Pakistan Steel Mill, Pakistan’s only steel manufacturing unit. The company’s annual exports amount to around 5 million tonnes out of Marmagao, Chennai and Paradip ports.
Sesa Goa reported 18% fall in net profit to Rs 25.66 crore for Q2 September 2006, versus Rs 31.28 crore in Q2 September 2005. Net sales rose 37.6% to Rs 226.24 crore (Rs 164.4 crore).
posted by SY at 3:31 PM
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