Zee Zooms On Preferential Issue Buzz

Zee Telefilms (ZTL) was the star of the day on the bourses today. The shares of the media major has been moving up sharply over the last few sessions. The market sentiment has turned positive on the counter on rumours that the promoters have privately placed shares at Rs 185 with a foreign media major against today's closing price of Rs 118.40 on the Bombay Stock Exchange (BSE). The stock had almost hit the upper circuit filter during the day at Rs 125.40.

However, the company denied any such placement but reiterated that the promoters decision announced in May 2001, to rope in a global media player as a strategic ally is still on.

ZTL has appointed investment banker UBS Warburg for advising the company in its search for a partner.

Pursuant to the process, the company has been in active discussions with many potential partners, in a number of business areas. "We continue to be in dialogue with these companies for arriving at a mutually acceptable framework of partnership," company release stated.

"There has been speculation in the last couple of days, that an international media company has acquired a stake in ZTL. While talks with potential partners are in various stages of negotiation, there has been no decision thus far," a ZTL press release stated.