Deccan, UB shares rise on deal report
Deccan gained as much as 7.6 per cent and Mallya's United Breweries Holdings rose 8.5 per cent.
By Agencies |
NEW DELHI: Shares of Deccan Aviation Ltd and billionaire Vijay Mallya's holding company rose after the Economic Times reported his Kingfisher Airlines Ltd may acquire Deccan to create India's biggest carrier by market share.
Deccan, operator of India's biggest low-fare airline, gained as much as 7.6 per cent and Mallya's United Breweries Holdings rose 8.5 per cent. Kingfisher is in advanced talks to acquire Deccan, the newspaper said, citing an unidentified Kingfisher official. Air Deccan will retain its low-cost status, the Times said.
``We can't comment on it yet,'' Nandini Verma, executive vice president, corporate affairs at the UB Group said in a telephone interview today. The UB group controls Kingfisher.
Kingfisher Chairman Mallya on May 7 said that he's ``interested'' in buying a stake in Deccan Aviation, although he's not in talks to purchase the stake.
G R Gopinath, Deccan Aviation's managing director couldn't be reached for comment. Ravi Nedungadi, UB Group's chief financial officer, didn't take calls made on his mobile phone. Both carriers are based in Bangalore.
Kingfisher and Deccan Aviation on May 3 denied a Times of India report about a merger between the two companies.
Shares of Deccan rose as high as 141 rupees on the Bombay Stock Exchange and traded at 139.1 rupees at 10:30 a.m. United Breweries rose to 671 rupees.
Deccan, operator of India's biggest low-fare airline, gained as much as 7.6 per cent and Mallya's United Breweries Holdings rose 8.5 per cent. Kingfisher is in advanced talks to acquire Deccan, the newspaper said, citing an unidentified Kingfisher official. Air Deccan will retain its low-cost status, the Times said.
``We can't comment on it yet,'' Nandini Verma, executive vice president, corporate affairs at the UB Group said in a telephone interview today. The UB group controls Kingfisher.
Kingfisher Chairman Mallya on May 7 said that he's ``interested'' in buying a stake in Deccan Aviation, although he's not in talks to purchase the stake.
G R Gopinath, Deccan Aviation's managing director couldn't be reached for comment. Ravi Nedungadi, UB Group's chief financial officer, didn't take calls made on his mobile phone. Both carriers are based in Bangalore.
Kingfisher and Deccan Aviation on May 3 denied a Times of India report about a merger between the two companies.
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Shares of Deccan rose as high as 141 rupees on the Bombay Stock Exchange and traded at 139.1 rupees at 10:30 a.m. United Breweries rose to 671 rupees.
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