United Spirits stock jumps 3% over reported Diageo talks
Shares in Spirits rose as much as 3.3 percent to its highest since January 2011, after CNBC TV 18 reported top officials at the Indian liquor maker were expected to meet Diageo on Thursday
Shares in Spirits rose as much as 3.3 percent to its highest since January 2011, after CNBC TV 18 reported top officials at the Indian liquor maker were expected to meet Diageo on Thursday to continue discussing a potential stake sale, citing unidentified sources.
United Spirits has been in talks to sell a stake to the world's biggest spirits group but the outcome has been in doubt after Vijay Mallya, who controls the liquor company, told Reuters on October 27 he had not reached a deal with Diageo .
United Spirits declined to comment when contacted by Reuters. Diageo officials were not immediately reachable.
United Spirits shares are known for their volatility, reacting often to the speculations about speculated developments from its talks with Diageo.
United Spirits shares were up 2.6 percent as of 11:22 am.
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Diageo is in talks to acquire a stake in Indian billionaire Vijay Mallya's United Spirits, reviving an on-again, off-again courtship that would ramp up its presence in the world's largest whisky market.
The deal with Diageo will provide respite to the burgeoning debt of United Spirits. It will also gain access to many new international markets and premium brands which would lift its margins over the long term.
Analysts say the sale of W&M, while reducing the company's debt, may already be reflected in United Spirits' shares, which have risen more than five-fold since the start of 2012.<br /><br />