Tata Steel jumps on Riversdale buy-out hopes

Tata Steel has jumped in noon trades following reports of Rio Tinto's plans to buy Riversdale.

Tata Steel is the single largest shareholder in Riversdale with a 21.15% stake in the coking coal miner. Riversdale shares rose in the Australian Stock Exchange after Reuters reported that global mining group, Rio Tinto is looking at buying Riversdale for $3.2 billion.

Tata Steel has jumped 3.5% to Rs 636. Earlier in the day, the stock has surged 4.2% to a high of Rs 640. Around 1.13 million shares have been traded on the BSE so far, as against a two week daily average trade of 1.54 million shares.