Gitanjali adds glitter on US buy talks

DALAL STREET SPIKES

Gitanjali Gems gained 10 per cent to end at Rs 239.90 on reports that the company is in talks to acquire US jewellery retailer -Samuels Jewellers Inc in a transaction valued at $25 million.

The counter saw volumes of 8.82 lakh shares on the BSE. Recently, Gitanjali Gems issued $110 million of FCCBs with the proceeds to be utilised to meet the company's capital expenditure requirements and acquisitions.

The FCCBs will have a maturity of 5 years and 1 day and will be convertible into equity shares at a conversion price of Rs 275 per share on maturity "� November 25, 2011.

In September, Gitanjali Gems has received approval from the central government for setting up of a sector specific special economic zone (SEZ) for gems and jewellery spread over 25.23 acres at Panvel, Maharashtra.