MARKET EYE-Exide down on insurance diversification; Citi downgrades

Thu Jan 24, 2013 1:09pm IST

Related Topics

Stocks

   

* Shares in Exide Industries fall 1.3 percent after
Dutch banking and insurance group ING said it was
selling its 26 percent stake in an Indian insurance venture to
local partner Exide.  
* Besides buying ING's 26 percent in ING Vysya, Exide said it
would buy 24 percent from two other private Indian investors -
Enam Group and Hemendra Kothari Group - for a total of about 5.5
billion rupees ($102 million). 
* Citigroup downgrades Exide to "sell" from "buy" and cuts its
target price to 118 rupees from 149 rupees on the news.
* The bank says the acquisition of the insurance stake is
"completely unrelated" to its core business and is also
"loss-making", thus requiring additional incremental funding. 
* Citigroup adds Exide "is unlikely to find a purchaser" for the
stake in the insurance unit.

 (abhishek.vishnoi@thomsonreuters.com /;
abhishek.vishnoi.thomsonreuters.com@reuters.net)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Photo

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

China iPhone Sale

China iPhone Sale

China regulator approves Apple's iPhone 6 for sale in China  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Jaitley's Health

Jaitley's Health

Finance Minister Jaitley in isolation ward, may skip U.S. trip.  Full Article 

China Factory

China Factory

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Vadodara Violence

Vadodara Violence

Police arrest 140 for religious clashes in Vadodara as Modi tours U.S.  Full Article 

Japan Economy

Japan Economy

Economy takes another hit as spending, factory output fall  Full Article 

AIG Bailout

AIG Bailout

Six years after AIG bailout, trial asks: was it legal?  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage