Buzz On Uti Pie Sale To Parent Cheers Nestle

Stocks of Nestle Ltd were among the biggest gainers on the Bombay Stock Exchange (BSE) today. The scrip touched a high of Rs 547 during intraday deals, before ending 2.28 per cent higher at Rs 524.40.

More than 54,000 shares of the company were traded on the BSE, while more than 87,000 shares of the changed hands on the National Stock Exchange.

The market was rife with rumours about block deals in Nestle Ltd, and that UTI was planning to sell its stake in the Indian subsidiary to the parent.

As of June 30, 2002, UTI held shares worth Rs 260 crore in the company through its various schemes. The largest holdings are through US-64, Mastershare, ULIP, MIP 99 and CGUS 92.

The deals in Nestle were rather small involving ten thousand to fifteen thousand shares. The market grapevine has it that Nestle itself placed the block deal with the intention of buying its shares from the market.

There could have been a block deal involving a few thousand shares at Rs 570 per share, market sources said, but there were conflicting reports about this.

In fact, a section of the market said the block deal was yet to take place, and the seller in this case could be UTI.