Hindustan Motors up on reports of Mitsubishi eyeing stake

The shares of Hindustan Motors (HM), maker of India's iconic Ambassador sedan, were up more than 14 per cent today on reports that Japanese auto major, Mitsubishi Motors Corp was in negotiations for a stake in the unprofitable firm, owned by he CK Birla Group.

Hindustan Motors' shares touched an intraday high of Rs 27.30 and an intraday low of Rs 23.50.

Though both Mitsubishi and HM denied the reports Mitusbishi president Osamu Masuko had in the recent past said the company had considered an equity stake in the Indian carmaker.

Also today, Dow Jones Newswires, citing an unnamed source said.
 
Mitsubishi was considering buying a Hindustan Motors factory in South India.