Vedanta shares up on Chinese bid talk'
Vedanta Resources Plc jumped the most in 17 months in London, report Brett Foley and Sarah Thompson.business Updated: Nov 23, 2007 22:38 IST
Vedanta Resources Plc jumped the most in 17 months in London trading on speculation that a Chinese company may buy a stake in India's largest copper and zinc producer.
Alex Pettifer, a spokesman for London-based Vedanta, declined to comment on "market speculation".
"Whether the Vedanta bid speculation is fact or rumor, it seems almost certain that the Chinese will be buyers of resource assets for strategic reasons over the next few years," said Richard Scott, who helps oversee about $1 billion at Iimia Investment Group in Exeter, England. "A lot of investors will be reluctant to give up on emerging markets and commodities as a key positive theme, and obviously Vedanta plays to both."
The shares rose as much as 220 pence, or 12 per cent, to 2,120 pence in London, and were trading at 2,002 pence as of 10:22 am local time, valuing the company at 5.76 billion pounds ($11.9 billion).
Vedanta produces copper in Australia, India and Africa. The company is spending more than $1 billion on expansion of its copper mine and smelter in Zambia.