Shares of Zee Entertainment Enterprises Ltd. surged to hit a 15% upper circuit on Tuesday after reports suggested the company is trying to review the $10 billion merger talks with Sony Group.
The lawyers are engaging in talks, but the ball is in Sony's court to go ahead with the merger, people aware of the development told NDTV Profit. The stalemate, however, continues, the people said.
Earlier, a media report said the two companies were trying to salvage the deal.
On Jan. 22, the merger between Zee Entertainment Enterprises Ltd. and Sony Group's India unit, Culver Max Entertainment, was called off, causing a significant loss in the former's stock price.
Shares of the company rose hit an upper circuit of 15% to Rs 205.25 apiece, the highest level since Feb 12. It came off the upper circuit to trade 10.20% higher at Rs 196.70 as of 2:22 p.m. This compares to a 0.05% advance in the NSE Nifty 50 Index.
The stock has declined 13.03% in the past 12 months. The relative strength index was at 43.81.
Out of 22 analysts tracking the company, two maintain a 'buy' rating, four recommend a 'hold,' and 16 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 5.0%.
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