Insider dealing mars Hitech sale to Aban Loyd

Vol 5, PW 3 (28 Mar 01) News in Brief
     

Stock exchange authorities in Mumbai are investigatinginsider dealing allegations following an announcement on Sunday 18th March that Chennai-based Loyd Chiles Offshore is acquiring 22.5% of Tata-controlled Hitech Drilling Services.

Brokers confirm that Hitech stock rarely exceeds 2,000 trades a day but on the Friday before the announcement it registered more than 200,000 trades, pushing the stock price to an evening close of Rs50.70. Aban is offering Rs92 per share for a total consideration of Rs187cr ($41m) and an open offer for the remaining 77.5% of Hitech.

Tata Group owns 43.5% of Hitech, Tata Industries owns 22.5%. Other Tata companies own the rest.

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