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Tuesday, June 10, 2008

Idea to buy out Modis' Spice stake for Rs 2,200 cr

The Aditya Vikram Birla group-controlled Idea Cellular is set to acquire BK Modi's 40.8% stake in Spice Communications for around Rs 2,200 crore.

A top source confirmed that the two companies have finalised the deal between Rs 77 and Rs 78 per share, a premium of 45% to Monday’s closing share price of Rs 53.20. The deal values Spice Communications at Rs 5,347 crore. The company is likely to make an announcement in the next few days.

After buying out the Modis, Idea Cellular will make the mandatory open offer for 20% stake in Spice that is currently held by the public. The two companies will be subsequently merged, said the source. Telekom Malaysia, which currently has a 39.3% stake in Spice Communications, will get a proportional stake in the combined entity, sources said. reported about a possible merger between Idea and Spice in its edition dated June 4.

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Economic Event Calendar

GMT+5:30 Event Vol. Actual Consensus Previous
Thursday, Jun 05
20:00 EIA Natural Gas Storage Change 1 122B 111B 101B
21:00 4-Week Bill Auction 1 4.170% 4.215%
21:30 Fed's Kugler speech 2
23:00 Fed's Harker speech 2
23:00 Fed's Schmid speech 2
Friday, Jun 06
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12:30 Foreign Currency Reserves 1 703B
18:00 Nonfarm Payrolls 3 130K 177K
18:00 Labor Force Participation Rate 2 62.6%
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