MUMBAI: Two-wheeler maker Kinetic Motor' shares on Wednesday soared nearly five per cent, the maximum permissible limit, amid reports about a possible buyout by Mahindras, even as the rumoured acquirer said it will not "confirm or deny" the talks about any such deal.
The leading auto maker Mahindra & Mahindra (M&M), which makes both personal and commercial vehicles, said in a statement issued to the stock exchanges that it is not in a position to either confirm or deny any talks about acquiring Kinetic Motor.
M&M said it examines various opportunities in different areas, from time to time on a continuing basis, but it is not practicable to comment upon every opportunity at every stage.
The statement followed media reports that M&M is in talks to buy Kinetic Motor.
"The company is not in a position to confirm or deny the veracity of the report given its policy of not commenting on speculative reports that emanates from such activity," the filing added.
However, the share price of Kinetic Motor, which had fallen by over 12 per cent in the past one week, reacted positively to the reports and closed 4.9 per cent higher at its upper circuit limit for the day at Rs 27.95.
However, the shares of M&M closed lower at Rs 656.15, down by 1.58 per cent from its previous close on the BSE.
Brokers said any additional financial burden arising out of a possible buyout of Kinetic Motor weighed down on the sentiments for M&M shares, while expectations for a potential buyout offer propelled the stock of the two-wheeler maker
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