DEN getting out of its lair?

There is unconfirmed news that Reliance Industries is in talks to acquire  Sameer Manchanda promoted multi-system operator (MSO), DEN Networks.

We all know that RIL is on the lookout to establish itself in the home broadband and cable TV services and it makes perfect business sense to acquire a company like DEN which will give RIL an immediate entry into 13 million households, including over 10.5 million digital subscribers.

This story was reported by Economic Times and it stated that DEN is looking at valuation of around Rs.2000 – 2200 crore.

Following this news, DEN counter saw an almost 6.5 times spike up in volumes and price rose almost 13% to Rs.99.15.  Another similar company, Hathway is the second top gainer – the brush off effect.