A Bloomsberg report said that the ITC Ltd., India’s biggest cigarette maker, is considering a bid to buy a stake in beleaguered Coffee Day Enterprises Ltd.
Earlier there was a report that Coca-Cola is mulling to take over Coffee Day. Now ITC also threw its hat on the ring to buy a stake in the company.
After the rumours, the Shares of ITC fell as much as 2.2% in afternoon trading in Mumbai, while Coffee Day rose 5%, extending its three-day winning streak to almost 16%.
Coffee Day is under pressure to pare borrowings after its founder V.G. Siddhartha took his own life as debt strains began to emerge in his companies.
Coffee Day has about 1,700 outlets, ten times more than what Starbucks Corp. runs in the world’s second most populated country, according to the National Restaurant Association of India.