The stock of United Spirits tumbled over 2 per cent on Tuesday after the company informed the exchanges that independent directors have approved the offer price of Rs 1,440 a share made by Diageo Plc’s as 'fair'.

In their recommendation, the United Spirits’ independent directors said the offer price of Rs 1,440 a share represented a premium of over 36 per cent to the stock’s closing price on September 24, a day before the Diageo and United Spirits deal was announced.

Further the directors said, the offer price also represents a 7.2 per cent premium to the closing price of the shares on November 8, 2012 - a day prior to the date on which public announcement was issued.

The stock hit a low of Rs 1,840 in early trade, as a section of market participants expected a revised offer at much higher price. The stock was trading around Rs 1,850 at 10.30 a.m.

With this recommendation, Diageo Plc may not revise the open offer, feel marketmen.

The independent directors were advised by Morgan Stanley India Co. Pvt. Ltd, which recommended that the open offer price was “fair from a financial point of view to the public shareholders” of United Spirits.

"However, the shareholders should independently evaluate the offer and take informed decision in the matter," independent directors said.

Diageo Plc in November had entered into an agreement with United Spirits to buy 27.4 per cent stake in the latter through a combination of share purchase from existing promoters (19 per cent) and preferential allotment of shares (8 per cent). Diageo also launched an open offer at Rs 1,440 a share to USL public shareholders to increase its stake to 53.5 per cent.

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