The Hindu Business Line : Mega deal in the offing?

THE stock market grapevine says that the Ambuja group may sell its holding in ACC Ltd to Thailand-based Siam City Cement. A market source said fresh issue of equity rather than selling the stake also could not be ruled out. He said the group has been in talks with a couple of large international cement-makers such as Holcim and Lafarge but is likely to announce a deal with Siam City, a group company of Thai industrial conglomerate Siam.

Holcim was reportedly interested in picking up a stake in Gujarat Ambuja itself. Siam City is one of the largest cement producers in its home country. ACC shares ended more or less flat at Rs 259.30. Nearly 32 lakh shares were traded on the BSE and more than 65 lakh shares changed hands on the NSE. Gujarat Ambuja shares lost Rs 2.10 on the BSE on Wednesday, closing at Rs 300.25 with about 8.35 lakh shares traded. More than 19.18 shares changed hands on the NSE.

Sellers @ 6K

A COUPLE of foreign institutional investors, both reckoned as long-term players in the Indian stock market, are said to be booking profits at the Sensex level of around 6000. These investors have been present in Indian equities for more than five years now and are churning their portfolios now. Newcomers, who are entering even at these levels, are absorbing part of their sales, a dealer said. A market source, however, expressed concern that the new entrants were not long-term investors but more in the nature of hedge funds, which specialise in swiftly moving in and out of markets.

Private troubles

A LARGE domestic broker-banker is reportedly facing some trouble with its private client group. A market source said the regulator has also been making enquiries about the company's troubles. He said some of the company's clients had failed to replenish margins after prices crashed last week. The company is known to take large leveraged positions in the derivatives market too. Dealers noticed a fair amount of selling from this entity on Wednesday.

Dinesh Narayanan

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