Heard on the street: USL sinks on buzz that stake-sale talks with Diageo fail

Shares of United Spirits (USL) plunged on rumours that the reported stake-sale negotiations between the Indian liquor maker and UK-based Diageo concluded without any results. The two companies have failed to reach a mid-path in terms of valuations, market sources said.

The market is rife with rumours that USL is planning to sell 25 per cent stake in the company to Diageo. However, senior company officials have strongly denied any such move. According to an institutional broker, the stock plunged close to 5 per cent on Friday after a muchfollowed operator sold large number of his investments in the company.

United Spirits shed Rs 48 to end the day at Rs 939.90 on the BSE on Friday.