CMC and TCS up as merger gets closer
By
Research Desk
about 9 years ago
CMC is up 3% at Rs.2025 with an intra day high at Rs.2040 with volumes surging 2.5 times and along it, TCS is also up – 2.5% at Rs.2601, closer to its intra day high of Rs.2604.80.
The reason for the sudden spike up of interest in both the stocks is approval from Bombay High Court for the merger of CMC into TCS. The court approval virtually completes the legal formalities involved in the deal.
In this deal, CMC shareholders will get 79 equity shares of Re 1 each of TCS for every 100 equity shares of Rs.10 each of CMC. The scheme of amalgamation will result in all equity shares of TCS in CMC ie. 154,89,922 equity shares of Rs 10 each (51.12 per cent of CMC’s paid up capital) getting automatically cancelled.