United Spirits, part of Vijay Mallya's cash-strapped group of companies, confirmed Tuesday it was in deal talks with global alcohol giant Diageo in a notice to the Bombay Stock Exchange. United Spirits' stock price rose on the news, to 1098.80 rupees a share at noon in India, up 3.6 percent for the day. United Spirits stock hit a 52 week high of 1,099.95 rupees a share on Monday on rumors deal talks were underway.
The stock price of Mangalore Chemicals and Fertilizers, another UB Group company, also surged 11 percent on Tuesday, trading at 47 rupees at noon, after the Times of India reported that two bidders were interested in Mr. Mallya's 30 percent stake in the company, citing unnamed sources.
The full United Spirits statement is below:
United Spirits Limited and Diageo plc confirm that Diageo plc is in discussion with United Spirits Limited and United Breweries (Holdings) Limited in respect of possible transactions for Diageo plc to acquire an interest in United Spirits Limited. However there is no certainty that these discussions will lead to a transaction.
