On Diageo, United Spirits stock up 10%

Extending gains for the fifth straight session, shares of United Spirits surged over 10 per cent as the company said UK-based Diageo Plc is in talks to buy stake in the Vijay Mallya owned firm.

United Spirits shares settled for the day 10.31 per cent higher at Rs 1,276.85 on the BSE. During the day, the scrip climbed 11.86 per cent to a 52-week high of Rs 1,294.95.

Analysts said the share is rallying amid hopes that the spirits maker will clinch a deal to sell a stake to Diageo Plc.

United Spirits and Diageo Plc had on Tuesday confirmed that the UK-based company is in discussion with it and United Breweries Holdings in respect of possible transactions to acquire an interest in the liquor firm.

The UB group is the promoter of USL with a 28 per cent stake.

Besides, another group company Kingfisher Airlines also surged 8.03 per cent to Rs 16.96 after Chairman Vijay Mallya said the carrier was in talks with foreign airlines for a possible stake sale.

Following the government move to allow FDI policy in the civil aviation sector, Chairman of debt-ridden Kingfisher Airlines Vijay Mallya had yesterday said the carrier was in talks with foreign airlines.

Among others, shares of United Breweries Holdings Ltd ended 1.85 per cent up, while United Breweries scrip rose by 0.81 per cent, McDowell Holdings (1.50 per cent).

n the stock market, the BSE benchmark Sensex closed at 18,579.50, down 52.67 points.

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