Tata Consumer Products is in the news today and clearly, figuring among the losers, it is not too inspiring.
Yesterday, there was unconfirmed news that the company was taking a 51% stake in the popular savoury and sweets company, Haldirams. The grapevine had it that the takeover was almost done but the stumbling block was the price- Haldirams was asking for $10 billion and Tata’s were not comfortable with this valuation.
This news was published by Reuters following which the stock price yesterday went up 4%; the stock exchanges sought clarification and on this the company refuted the news and said that it is not in negotiations as reported.
The company however added, "The company evaluates various strategic opportunities for growth and expansion of the business of the company, on an ongoing basis. The company will make appropriate announcements, as and when any such requirement arises."
Following this refusal, the markets got disappointed and the stock slipped into the red today; the stock today opened 1.5% lower at Rs.865.90 and slipped down further to an intraday low at Rs.853.85, a fall of 3%.