April 16 (Bloomberg) -- Crompton Greaves Ltd. rose to the highest in almost three years in Mumbai trading after a newspaper report the company’s founding family is holding talks to sell its stake to Hitachi Ltd.
Crompton Greaves gained as much as 5.4 percent. The shares rose 2.7 percent to 183.15 rupees as of 1:36 p.m., poised for their highest close since July 2011.
Hitachi is leading the race to buy the stake controlled by the founding family of Crompton Greaves, the Economic Times reported citing two people familiar with the development. The deal will probably value Crompton Greaves, which makes electrical equipment such as transformers and switchgear, at more than $2.5 billion, according to the report.
Crompton Greaves doesn’t respond to “baseless market speculation,” spokeswoman Paula Sengupta said in an e-mail. Yoji Maruo, spokesman at Tokyo-based Hitachi, said the company has nothing to comment on the report.
Crompton Greaves said in exchange filings last month it has not been informed of or is aware of the speculation regarding sale of stake by the founders of the company.
Avantha Holdings Ltd. owns 40.84 percent of Crompton Greaves, Corella Investments Ltd. holds 1.15 percent and Lustre International Ltd. 0.7 percent, according to data compiled by Bloomberg. Gautam Thapar is the founder and chairman of the Avantha Group, which controls businesses including paper and pulp, food and utilities, according to its website.
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