Kingfisher shares jump on United Spirits, Diageo deal

Last Updated: Fri, Nov 09, 2012 10:09 hrs

India's debt-laden Kingfisher Airlines extended gains after Reuters reported its chairman Vijay Mallya clinched a deal to sell a stake in United Spirits to Diageo , on hopes the money raised could be used to revive the carrier.

Diageo is set to acquire a 53.4 percent stake in United Spirits for more than $2 billion, according to an internal memo related to the deal obtained by Reuters.

Kingfisher's flight license has been suspended by aviation regulators. As of 3:27 p.m., Kingfisher shares were up 4.7 percent, while United Spirits shares were up 0.7 percent.

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