United Spirits surges 12% since opening of Diageo's open offer
Diageo's mandatory tender offer to buy up to 26% of shares in Vijay Mallya promoted company begins on April 10.
United Spirits has rallied almost 5% to Rs 2,015, extending its over 7% rally in past three trading session on NSE, since the Diageo's mandatory tender offer to buy up to 26% of shares in Vijay Mallya promoted company begins on April 10. The offer will closes on April 26.
The stock has rallied 12.4% in past four trading sessions on the Bombay Stock Exchange compared to around 1% gain in benchmark Sensex.
“Diageo is widely expected to gain management control of United Spirits even as its open offer for shareholders, which launches on Wednesday, is seen as unlikely to succeed after the global spirits maker did not raise the offer price,” the Reuters report suggests quoting Nomura.
The UK's Diageo Plc decided keep the Rs 5,440-crore open offer price unchanged at Rs 1,440 a share, much lower than the current market price.
The stock opened at Rs 1,919 and has seen a combined 2.14 million shares changing hands on the counter till 1503 hours on NSE and BSE.
The stock has rallied 12.4% in past four trading sessions on the Bombay Stock Exchange compared to around 1% gain in benchmark Sensex.
“Diageo is widely expected to gain management control of United Spirits even as its open offer for shareholders, which launches on Wednesday, is seen as unlikely to succeed after the global spirits maker did not raise the offer price,” the Reuters report suggests quoting Nomura.
The UK's Diageo Plc decided keep the Rs 5,440-crore open offer price unchanged at Rs 1,440 a share, much lower than the current market price.
The stock opened at Rs 1,919 and has seen a combined 2.14 million shares changing hands on the counter till 1503 hours on NSE and BSE.