Mumbai: The founding family of India’s Oberoi hotel chain is in talks to sell a part of its stake to Analjit Singh, who controls healthcare services and insurance firm Max India , the chairman of the hotel group said.

“The matter is under deliberation. No decision has been taken,” P.R.S. Oberoi, the head of EIH Ltd that owns the hotel chain, said in a statement late on Thursday.

He was responding to a report in the Economic Times newspaper that the Oberoi family plans to sell a little over 17% to Singh for up to Rs12.5 billion ($270.6 million).

The Oberoi family owns about 43% of EIH, the paper said.

The report had lifted EIH shares more than 7% to Rs136.25 on Thursday.

On Friday, the Economic Times said diversified tobacco firm ITC that also runs a hotel chain and owns nearly 15% in EIH was evaluating the situation.

The paper said bankers close to ITC indicated that the firm may raise its holding to 15% and trigger an open offer for another 20%.

“We have no comments to make on this,” an ITC spokesman told Reuters.