Shares of SK -Bangur owned West Coast Paper fell in morning trade on reports that US-based International Paper is in talks to buy stake in the company in a deal valued at around Rs 800-1,200 crore.
At 11 am, West Coast Paper was trading 5 percent lower on the BSE at Rs 67.20, while the Sensex was 0.03 percent lower at 17320 levels. The West Coast stock has hit the upper circuit limit for the past two days.
According to an Economic Times report, an initial round of negotiations between the Memphis-based International Paper and West Coast Paper was held recently where valuations and future expansion plans for the plant located in Dandelli, Karnataka, were discussed.
Last month, International Paper India Managing Director Rampraveen Swaminathan had said that long-term prospects for the paper industry in India are very bright as per capita consumption of paper was still very low in the country.He had said the Indian paper and packaging market was 11 million tonnes and growing by one million tonne per year.
India had nearly 15 percent of the global population, but currently it consumes about 2 percent of the world's paper output.
n 2011, International Paper had acquired Andhra Pradesh Paper for Rs 1,900 crore.
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