Zee Entertainment stock rebounds, gains over 4% as company says Sony merger cancellation report 'baseless'

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Key Points

Shares of Zee Entertainment bounced back strongly in today's intraday trade by gaining 4.48%, reaching 267.80 apiece, following a 7.64% drop in the previous trading session..

The sharp uptick in shares today is attributed to the company's clarification regarding media reports suggesting a potential cancellation of the planned merger between Zee Entertainment and Sony Group..

On Monday, media reports claimed that Sony Group Corp was planning to call off the merger pact of its India unit with Zee Entertainment..

The deal, which was signed between Zee Entertainment and Sony Pictures Networks India in 2021, has a stipulated period of two years in which the merger was to be completed before December 21, 2023, including regulatory and other approvals, with a grace period of one month to complete the transaction..

Bloomberg further reported, citing the above mentioned people, that defaulting on the payment to the Disney unit poses fresh headaches for Zee, including possible legal wrangles, even as it deals with the fallout of a collapsing merger with the Sony Group..

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