Shares in United Spirits surge as much as 9.8 percent to their highest since July 2011. Gains come after Bloomberg News on Friday reported Diageo Plc is in advanced talks to buy a stake in the domestic spirits maker controlled by billionaire Vijay Mallya, citing four unidentified people with knowledge of the matter.
Other companies belonging to Mallya's UB Group gain as well, with Kingfisher Airlines up 3.1 percent, UB Holdings up 3.6 percent, and United Breweries up 4.4 percent as of 11.06 a.m.
"We do not comment on such speculation," a UB Group spokesman said when contacted about the report.
A Diageo spokesman offered a "no comment" when contacted.