Intraday Spotlight: Federal-Mogul Goetze (India) gains 6.8 per cent due to merger agreement

Its parent company Tenneco Inc has entered into a merger agreement with Pegasus Holdings III, LLC.

Federal-Mogul Goetze (India) Ltd, which is engaged in the auto-parts and equipment industry, has rallied today by over 6.8 per cent from its previous close of Rs 251.25. The stock opened at Rs 267.80 and has made its day high of Rs 275. As of 12:20 pm today, the stock was trading at Rs 268.40 on the BSE. 

The company had announced a merger agreement of its parent company Tenneco Inc with Pegasus Merger Company (a wholly-owned subsidiary of Pegasus Holdings III, LLC. The Pegasus Merger Co will merge into Tenneco Inc and will continue as Tenneco Inc going ahead. 

Before this corporate action, the company had announced an open offer for its 1.39 crore shares representing a 25.02 per cent stake for all the public shareholders of Pegasus Holdings III, LLC. 

In the last five trading sessions, this smallcap stock has gained about 15.6 per cent when the broad market indices are losing altitude. It has a 52-week high of Rs 358.20 and a 52-week low of Rs 207.10.