Mahindra shares fall on Aston Martin 'bid'

Nov 26 2012, 15:41 IST
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Mahindra shares fall (PTI) Mahindra shares fall (PTI)
SummaryShares in M&M drop after reports indicate automaker has entered into a takeover deal.

Shares in Anand Mahindra-led Mahindra & Mahindra drop as much as 2.9 percent after reports that the automaker has entered into a takeover deal with an Italian private equity fund for 50 percent of British luxury car maker Aston Martin.

* Brokerage Edelweiss says in a note Aston Martin would require significant investments in research and development, and benefits of technology transfer to the Indian tractor and utility vehicle maker's product portfolio was questionable given little similarity between portfolios.

* Edelweiss says it views the bid with caution, but maintains its buy rating with a target price of 1,027 rupees on Mahindra stock.

* Mahindra & Mahindra shares have gained 7.9 percent this month as on Friday's close. The stock was down 2.78 percent at 927.50 rupees at 0642 GMT.

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