Ray-Ban Up On Open Offer Hopes
The shares of Rayban Sun Optics surged on expectations that the company's new Italian parent, Luxottica, may come out with a open offer for the shareholders soon.
The shares of the vision care major were up 11.86 per cent at Rs 61.80 by mid afternoon on the Bombay Stock Exchange (BSE), recovering from its intra-day low of Rs 54.10. The stock finally closed at Rs 61.05 after touching an intra day high of Rs 62.85, up 10.50 per cent.
Totally 5.62 lakh shares changed hands on the BSE today. In the last eight trading sessions, the Rayban stock rose by 28 per cent from Rs 48.35 on 21 May 2002.
Dealers said the surge on the counter is purely on speculation that the company's new Italian parent, Luxottica, will have to make an open offer to public shareholders for acquiring further 20 per cent equity as there are rumours that Luxottica had violated the Indian takeover code while it gained control of Rayban Sun Optics.
According to one analyst, " Some operators were rigging the stock on the hopes of an open offer. Earlier this week, there were reports that the Securities and Exchange Board of India (Sebi) will soon decide whether Luxottica has violated the takeover code."
It is understood that Luxottica may take a stand that it has not violated the code when it acquired the control of Rayban globally and thus gained indirect control of the Indian arm, but if Sebi feels that the eyewear giant has violated the code, then it has to make an open offer at Rs 96.35 per share to acquire an additional 20 per cent in the Indian arm.