Alstom rises on Areva open offer

DALAL STREET SPIKES

The stock of Alstom gained 20 per cent even as the open offer price announced for 20 per cent stake in Alstom by France's Areva Group was set at Rs 75.03. The stock closed at Rs 91.05 with over 5 lakh shares changing hands at the counter on BSE.

Areva Group announced an open offer for Alstom after it entered into an agreement with Alstom Group to acquire its up to 66.35 per cent stake in the company at Rs 75.03.

The open offer price has been calculated as the average price of the past 26 weeks. The Areva Group intends to keep Alstom listed on BSE. The acquisition in Alstom is being made to strengthen Areva's position in the transmission and distribution business in India.

It may be recalled that Areva has already acquired the transmission and distribution assets of the Alstom Group outside India.