Power stocks are trading in the green led by KSK Energy and Indiabulls Power. As per a leading daily, Tata Power has acquired 26% stake in Indonesian coal mine, Baramulti Sukses Sarana Tbk (BSSR). The move is to ensure fuel supply for its upcoming power plants. Tata Power will be able to source coal from BSSR and its subsidiary PT Antang Gunung Meratus (AGM). Both these firms have a combined reserve of 1 bn tonne of coal in mines which are located in south and east of Kalimantan in Indonesia. The power company has not yet disclosed the deal size. However, it may be close to Rs 7.5 bn as per the current market capitalization of BSSR.
Hotel stocks are trading strong led by Indian Hotel and Hotel leela Venture. According to a leading financial daily, Orient Express has rejected a takeover bid by the Tata-owned Indian Hotels dealing a setback to the Indian company's attempt to substantially increase its global footprint by adding the luxury hotel resort to its portfolio. This is the third such rejection for Indian Hotels and comes weeks after the Mumbai-based hotel company tied up with Ferrari's Montezemolo family to bid USD $12.63 per share, a 40% premium to the existing share price of Orient Express. Orient Express has rejected the offer because they feel that the Tatas have significantly undervalued the company. The offer rejection may not be the end of the road for the Tata group which has already arranged funding and is keen on taking over the company.