By Abhishek Vishnoi
MUMBAI (Reuters) - Century Textile and Industries
The sources said the planned sale was part of a broader move to streamline Birla family holdings and to transfer Century Textile's core businesses from the leadership of chairman Basant Kumar Birla - a 94-year-old patriarch of Indian business - to a younger generation.
As part of the plan, the group's textile division will be merged with Aditya Birla Nuvo Ltd
Century Textile's cement unit, meanwhile, will merge with UltraTech Cement Ltd
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They said ITC was interested in the paper asset to diversify its operations beyond tobacco.
The sources declined to be named as the deal talks are not yet public. Financial details were not immediately known.
ITC said in a statement it was not in any negotiations to buy Century Textile's paper unit.
Aditya Birla Nuvo said in a statement reports about the company being in merger talks were not true. A spokeswoman for the Aditya Birla Group declined to comment.
Century Textile's officials were not reachable for comment.
News of the overhaul, first reported by Reuters, sent Century Textile shares up over 8 percent, while Aditya Birla Nuvo
Shares in other Basant Kumar Birla group companies also rose. Century Enka
After the deals, Century will be left with real estate assets and a chemicals business, the sources said. It was unclear whether there were plans for these assets.
Axis Bank
An Axis spokeswoman declined to comment.($1 = 62.9350 rupees)
(Editing by Anand Basu and Muralikumar Anantharaman)