Mangalore Chem surges on takeover speculation

Reuters Market Eye - Shares in Mangalore Chemicals & Fertilizers Ltd (MCF) surged 10 percent to a record high, hitting their maximum daily limit for a second consecutive session, on expectations the company is becoming a target for a takeover.

Zuari Fertilisers, a unit of Zuari Agro Chemicals Ltd , bought a 3.49 percent stake in MCF in open markets according to bulk trade data from the NSE Exchange on Wednesday, taking its total stake in the company to 13.2 percent.

Meanwhile, Deepak Fertilisers and Petrochemicals Corp Ltd has recently increased its stake in MCF to nearly 24.5 percent stake.

MCF shares have surged 72 percent since the start of June, compared with a 2.8 percent fall in the NSE index <.NSEI> during the same period on speculation that Zuari Agro and Deepak are competing to buy the company.

 

MCF is controlled by billionaire Vijay Mallya who also owns Kingfisher Airlines Ltd and recently sold a majority stake in United Spirits Ltd to Diageo Plc

(Reporting by Abhishek Vishnoi)