Kinetic Motor spurts on news of M&M's buyout talks
14 May 2008
Shares of two-wheeler maker Kinetic Motor soared nearly five per cent, hitting the ceiling, amid reports about a possible buyout by Mahindra & Mahindra (M&M).
M&M, the country`s largest utility vehicle maker, has not confirmed or denied any talks about such a deal.
In a statement issued to the stock exchanges, Mahindra & Mahindra said it is not in a position to either confirm or deny any talks about acquiring Kinetic Motor.
M&M said it examines various opportunities in different areas, from time to time on a continuing basis, but it is not practicable to comment upon every opportunity at every stage.
"The company is not in a position to confirm or deny the veracity of the report given its policy of not commenting on speculative reports that emanates from such activity," the filing added.
Media reports said the two companies are in the final stage of due diligence and M&M is expected to buy majority stake in the two-wheeler maker.
Kinetic Motors is valued at around Rs150 crore and a 50 per cent stake is expected to cost around Rs75 crore.
M&M shares rose Rs4.25, or 0.64 per cent, and closed at Rs666.7. Around 214,111 shares were traded on the BSE.