India's VXL Rises 7 Percent on Speculation Zee to Buy Stake
vxl.net
Bloomberg News
September 28, 1999, 2:22 a.m. PT
Mumbai, Sept. 28 (Bloomberg) -- VXL Instruments Ltd., an Indian maker of cable modems and other computer peripherals, rose as much as 7 percent on speculation Zee Telefilms Ltd. planned to buy stake in the company.
VXL rose 15.75 rupees to 247.00 ($5.70) on the Stock Exchange, Mumbai. Its shares have surged eight-fold this year.
Siticable Ltd., a subsidiary of Zee Telefilms Ltd. -- which runs the country's most popular television network -- signed an agreement with VXL earlier this year to test cable modem technology.
"We have a relationship with them (VXL) which might turn into a long term agreement at some stage," said Vikas Gupta, company secretary at Zee. He declined to either confirm or deny the speculation.
Siticable, which distributes Zee's satellite channels to more than 4.5 million households in India, intends to sell Internet and related services through cables.
Yesterday, Zee Telefilms's Chairman Subhash Chandra said his company would spend 4 billion rupees over a period of four-and-a-half years on selling Internet services through a 100 percent subsidiary called E-Connect Ltd.
Zee's shares, which have risen seven fold this year, fell 5.7 percent to 4825.00 on the Stock Exchange, Mumbai. |
