Tata Comm jumps up on a buzz

Tata Communications is doing pretty well in this otherwise poor market. The stock, after having hit an intra day low of Rs.405, has bounced back to Rs.415, up over 3%. Its intra day high now stands at Rs.418. Its 52-week high stands at Rs.504.90.

The stock is up on unconfirmed news reports that behemoths like Google and Amazon are in the fray to buy the data center business of the company. News is that talks have begun and the deal is being pegged at around Rs.4200 to Rs.4600 crore. Other names that are in this race are equity funds like Blackstone Group, Carlyle, KKR, Bain Capital and Advent International. All are reportedly looking at buying up to 74% stake, which means full control on the data center, which has some 44 offices spread across India and abroad.

This deal, if it goes through, will help Tata Communications will use the money raised from selling the data center unit to pare its debt from the current Rs.9200 crore.

The stock exchanges have sought clarification from the company about this news; the company is yet to respond.