International Paper may look to delist AP Paper: Tulsian

International Paper may go for delisting of AP Paper, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “There is strong buzz going on that probably the International Paper will go for delisting of the AP Paper and that’s the reason this stock has been in the limelight for last maybe a fortnight or so, but honestly difficult to comment on that because they are holding 75%. They have acquired it at a very aggressive price. You can’t rule out even if that move is initiated and in sympathy to that all the paper stocks have been moving up."
He further added, "If you take the history of the paper companies they have never been able to report good numbers or have been able to make profits in spite of the price increase or in spite of the volume increase which have always been seen just to meet the increased cost of production. So I don’t think that there is anything positive about the paper. If you see the integrated companies like Century Textile they have the paper division that is not making good money. ITC they have the paper, paper board division that is not contributing substantially. The stand-alone paper companies are very few like West Coast because in West Coast also it was thought that probably the way the stake sell has happened in AP Paper it can also happen in West Coast Paper and not for the Ballarpur Paper. So I won’t be taking a positive call. But yes, in regards to AP Paper it’s difficult to say whether the delisting move can really get initiated by the present promoters of the company."