With fresh rumours of take over fuelling the stock price, the private sector Karnataka Bank’s shares hit a fresh 52-week high on Friday, but a denial by the bank led to stock price cooling off a bit at the close. .
Kotak Mahindra Bank and ICICI Bank, private sector banks, mentioned as potential suitors, also witnessed their share prices touching a new 52-week highs on the BSE.
But there appears to be no shortage of takeover rumours, since even in 2005 it was mentioned that one of the Ambani brothers was accumulating the Karnataka Bank’s shares, which the bank had denied then.
In a clarification to the stock exchanges on the day, Kotak Mahindra Bank Ltd said: “we deny the rumour’ (of any takeover of Karnataka Bank by KMBL). Similarly, ICICI Bank said: “Bank is currently not considering merger or acquisition of any bank.”
Helps stock
In fact, a few weeks back, there were rumours of ICICI Bank and Kotak Mahindra Bank having discussions with the Karnataka Bank for possible takeover but this was denied by then by all the three.
Karnataka Bank on its part said then: “We once again deny merger rumour with any bank”.
But the takeover rumour has done plenty of good to the stock in the past two months. The stock had closed at Rs 110.90 on October 1 and by the end of the month it had rallied to Rs 135.60.
On Friday, Karnataka Bank shares touched a high of Rs 179.40 on the BSE before cooling off a bit to Rs 175.15 at the close accompanied by a huge trading volume of 60.06 lakh shares as against the 2-week average of 13.16 lakh shares.
Kotak Mahindra Bank’s shares also touched a fresh yearly high of Rs 673.80 before dipping marginally to Rs 668.70 at the close, a gain of Rs 20.05. ICICI Bank touched a year high of Rs 1,104.7 and closed at Rs 1,098.6.