United Spirits hits high on Diageo talks

Stocks

oi-Sneha

By Sneha B K

Published: Monday, September 24, 2012, 13:10 [IST]

The Vijay Mallya group company United Spirits surged ahead of its annual general meeting (AGM) on Tuesday after a leading news agency reported that Diageo Ltd is in talks with United Spirits to buy a stake.

The shares of the company surged 10.36% to Rs 1097 on BSE at 1.00 pm IST. It touched intra-day high of Rs 1,099.

According to media reports, the deal is expected to be announced next month. If the deal is finalised, it would see fresh cash flows into the company and ease cash constraints, particularly as group company, King Fisher Airlines is almost bankrupt.

The company's Annual General Meet (AGM) is to be held on September 25, 2012.

Earlier there were reports that "Diageo may pay Rs. 3,000 crore for up to 27% stake in United Spirits.

However, these reports were denied by United Spirits stating that "the news item forwarded contains speculative information and it would not be appropriate for us to comment on market rumours."

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