Bharti Airtel jumps 8% on Tata mobile unit deal
New Delhi, Oct 13 (PTI) Shares of Bharti Airtel todaysurged up to 8 per cent as the company announced acquisitionof Tata group's loss-making mobile telephony business, almostfor free, boosting its spectrum holding and user base.
The stock after a positive opening jumped 7.98 per centto Rs 432 on the BSE.
On the NSE, it soared 8 per cent to Rs 432.60.
The stock was the biggest gainer among blue-chips on boththe key indices during the morning trade.
Shares of Tata Teleservices Maharashtra Ltd (TTML) zoomed9.95 per cent to Rs 4.86 -- its highest trading permissiblelimit for the day -- on the BSE.
At the NSE, it jumped 9 per cent to Rs 4.80.
Bharti Airtel is set to take over Tata group's money-losing mobile business from November 1, saving the Tatas fromthe prospect of having to shut down the struggling unit.
Airtel, for whom it will be the seventh acquisition infive years, will acquire 4 crore customers of TataTeleservices Ltd (TTSL) and Tata Teleservices MaharashtraLtd (TTML) in 19 telecom circles or zones on "a debt-free,cash-free basis", the two groups announced in separate butidentical press statements yesterday.
While all of the Rs 31,000 crore debt will remain withthe Tatas, Airtel will assume payment of close to 20 per centof the Rs 9,000-10,000 crore deferred payments for thespectrum to the government. The Tatas will pay the rest. PTISUMARD.
This is unedited, unformatted feed from the Press Trust of India wire.