Rain Calcining to Terminate Agreement with Oxbow Carbon & Minerals LLC

Rain Calcining Ltd has announced that the Company has entered into Calcined Coke Marketing Agreement and Green Petroleum Coke Supply Agreement (the "Agreements") on September 18, 2004 with Oxbow Carbon & Minerals LLC.

The Oxbow Carbon & Min LLC (Oxbow) has recently acquired GLC Carbon USA, Inc and the Company through its wholly owned subsidiary Company namely Rain/CII Holding Inc has acquired CII Carbon LLC, as a result of which both Oxbow and the Company have substantial Calcining operations in the United States of America.

If the Agreements are continued, it may result in sharing pricing and other competitively sensitive information, which may be treated as violation of certain competitive laws due to the aforesaid acquisitions by Oxbow and the Company.

In view of the above the Company vide its letter dated July 19, 2007 served a notice to Oxbow Carbon & Minerals LLC for termination of aforesaid agreement with effect from December 31, 2007.

The stock was trading at Rs.42.05, up by Rs.0.90 or 2.19%. The stock hit an intraday high of Rs.42.50 and low of Rs.40.90. The total traded quantity was 80666 compared to 2 week average of 215878.

Source : Equity Bulls

Keywords