InvestorQ : Why are future group stocks rallying, despite the adverse court order favouring Amazon?
Chandralekha Desai made post

Why are future group stocks rallying, despite the adverse court order favouring Amazon?

Answer
image
NISHA Nayak answered.
3 months ago
Follow

In fact, that is quite paradoxical. When the RIL/Future deal was put in abeyance by the Supreme Court asking them to await the final order by the SIAC based out of Singapore, the general expectation was that the stock of Future group would crack. However, the stocks of Future Group companies have rallied as much as 17%. This was largely on the back of reports that Amazon had drawn a blueprint to bail out the cash-strapped Future Retail.

Actually, that is not hard to fathom. After playing the deal spoiler, the onus is on Amazon to provide an alternative to the Reliance offer. Amazon had filed a complaint with the Singapore International Arbitration Centre or SIAC claiming that it had the first right of refusal, due to its holding in Future Coupons. According to markets, the onus is now on Amazon and Future group can logically expect Amazon to match or better the RIL offer.

4 Views