Rover deal failure buzz dents Tata Motors

DALAL STREET SPIKES

Tata Motors plunged over 4 per cent on rumours that the company's Rover deal is not materialising. The stock as a result ended 4.40 per cent lower to close at Rs 467.80 after touching the day's high of Rs 495.

However, sources suggested that the counter is witnessing selling pressure on account of warrant conversion and rumours of the Rover deal off is completely false.

Tata Motors had started supplying the Indica to MG Rover of the UK as per an agreement signed in December 2002.

As per the agreement, Rover was to buy 1,00,000 cars from Tata Motors over five years, from December 2002. Rover is selling the car under the City Rover brand. The stock since March 8 has lost nearly 13 per cent to yesterday's close of Rs 467.

Auto analysts said the recent fall in stock prices is market driven as fundamentals of the company are very much intact with the company looking for more joint ventures with foreign companies.