West Coast Paper surges 20% on International Paper buyout buzz

A combined 2.29 million shares have changed hands on the counter so far and there are pending buy orders for 114,118 shares on the NSE and BSE.

West Coast Paper Mills has locked in upper circuit of 20% at Rs 84.30, extending its Monday’s over 7% rally on renewed speculation that that US-based International Paper Mills is planning to buy a stake in the company.

“International Paper, which last year acquired Andhra Paper Mills for about $425 million (about 1,900 crore then), is now in talks to buy the SK Bangur-controlled West Coast Paper,” the report suggests.

West Coast Paper is demanding a valuation of nine to ten times the current market price from International Paper, added report.

In last month, on September 6, the company clarified to the stock exchanges that the company denies the reports and in case of any development, which has bearing on the operation/performance of the company including price sensitive information, then the company will inform to the exchange.

 

On the National Stock Exchange, the stock opened at Rs 72.10 and has seen over six-fold jump in trading volumes. A combined 2.29 million shares have already changed hands on the counter so far and there are pending buy orders for 114,118 shares on the NSE and BSE.