Paper companies today surged by up to 20 per cent on BSE,spurred by investors activity in the wake of buyout deal between US-based International Paper and Andhra Pradesh Paper Mills. Andhra Pradesh Paper Mills stock led the gains among paper mills,surging by the 20 per cent to touch its upper limit to Rs 236.15 on BSE. JK Paper stock was up by 19.96 per cent to Rs 57.70 and West Coast Paper Mills closed 17.11 per cent higher at Rs 90 a piece. Ballarpur Industries accelerated by 16.38 per cent to Rs 37.65 and Tamil Nadu Newsprint & Papers jumped 9.44 per cent at Rs 133.95 on BSE. "The surge in paper stocks are mainly attributed to sentimental buying in the wake of acquisition of AP Paper Mills by US-based International Paper," Religare Securities Executive Vice President and Head of Retail Research Rajesh Jain said. Yesterday,International Paper signed agreement with the Kolkata-based L N Bangur Group to buy a 53.5 per cent stake in AP Paper Mills for about USD 257 million. International Paper will also launch a mandatory public tender offer to acquire additional,up to 21.5 per cent,of the outstanding shares of AP Paper Mills for approximately USD 104 million in cash. Meanwhile,the broader market index Sensex closed 169.38 points higher at 19,290.18 level.
