Bloomberg News

Sterlite Gains as Court Rules on Asarco Damages: Mumbai Mover

February 15, 2012

Feb. 15 (Bloomberg) -- Sterlite Industries (India) Ltd., the nation’s largest copper producer, headed for the highest in six months in Mumbai trading after a court ruling on the damages to be paid for breaking an agreement to buy Asarco LLC.

The shares rose as much as 6.6 percent to 137.50 rupees, the highest since Sept. 8, and traded at 134.30 rupees as of 12:31 p.m. The benchmark Sensitive Index gained 1.8 percent.

Grupo Mexico SAB’s Asarco unit, which sought $2.28 billion in damages from Sterlite, will receive $82.8 million, according to the ruling of U.S. Bankruptcy Judge Richard Schmidt in Corpus Christi, Texas. Billionaire Anil Agarwal-controlled Sterlite walked away from an agreement to buy Arasco in 2008, citing a decline in copper prices.

“The investors are happy that the issue is now of out of the window,” said Abhisar Jain, an analyst at Centrum Broking Pvt. in Mumbai, who has a “buy” rating on the stock.

Sterlite harmed Asarco by delaying its exit from bankruptcy, Schmidt said. The judge reduced the damages because Grupo Mexico and Sterlite waged a 2009 bidding war for Asarco, which Grupo Mexico won.

The case is Asarco LLC v. Sterlite (USA) Inc., 10-02010, U.S. Bankruptcy Court, Southern District of Texas (Corpus Christi).

--Editors: Indranil Ghosh

To contact the reporter on this story: Abhishek Shanker in Mumbai at ashanker1@bloomberg.net

To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus