RIL eyeing stake in cable operators, shares rally

Shares of Den Networks and Hathway Cable on Monday rallied on the bourses amid reports that Reliance Industries (RIL) was considering buying stake in some large cable operators.

Hathway Cable settled 12.11 per cent higher at Rs 132.80 on the Bombay Stock Exchange (BSE), even as the company denied having been approached by Mukesh Ambani-led RIL for any stake purchase.

Den Networks, which also termed the reports as speculative, gained 6.25 per cent and closed at Rs 63.75.

Shares of RIL, however, ended 2.55 per cent lower at Rs 713.40.

According to media reports, RIL is planning to pick up a minimum 26 per cent stake in leading cable operators, including multi-system operators.

Reports added that companies like Den Networks, Digicable Networks, Hathway Cable, IndusInd Media and Communications Ltd (InCable) as well as some independent multi-system operators and smaller operators with good regional presence could be approached by RIL as part of its broadband TV business plans.

However, Hathway Cable & Datacom in a clarification to the BSE said: "Nobody from RIL has ever approached the company or anybody associated with our company."

Den Networks said that it is the company's policy not to comment on speculative media reports and any information on strategic investments will be brought to the notice of the stock exchange as is required under the provisions of listing agreement.