Diageo's open offer for United Spirits shares delayed: source

Mon Jan 7, 2013 7:53pm IST

Related Topics

Stocks

   

REUTERS - UK drinks group Diageo's mandatory tender offer to buy up to 26 percent of shares in India's United Spirits has been postponed as the deal has yet to receive local regulatory approvals, a source with direct knowledge of the matter said on Monday.

Diageo agreed in November to buy a 53.4 percent stake in United Spirits Ltd for $2.1 billion under a two-stage process including the mandatory tender offer which was set to open on Monday and close on January 18.

A new date will now be set for the offer after the deal receives approval from the capital markets regulator Securities and Exchange Board of India and the Competition Commission of India, said the source.

United Spirits, which is currently controlled by Indian businessman Vijay Mallya, declined to comment on the open offer.

"The initial timings were clearly outlined as indicative only," a Diageo spokeswoman said in London.

"We continue to work towards our initial timeline, which would see the transaction completing in Q1 2013," .

Shares in United Spirits ended down 1.2 percent at 1,914.25 rupees on Monday, higher than Diageo's offer to minority shareholders of 1,440 rupees a share. The stock is up nearly 43 percent since the announcement on the deal.

Some analysts have said the sharp jump in the stock price could mean the British group, owner of such brands as Johnnie Walker whisky and Smirnoff vodka, will be forced to sweeten the offer price.

(Reporting by Sumeet Chatterjee in Mumbai,; Anurag Kotoky in New Delhi and Anjuli Davies in London; Editing by Greg Mahlich)

FILED UNDER:

INTERNAL SECURITY

REUTERS SHOWCASE

Setback For Sahara

Setback For Sahara

Supreme Court defers verdict on Sahara plea to raise more debt on hotels  Full Article 

SpiceJet Crisis

SpiceJet Crisis

SpiceJet says fleet grounded on lack of fuel  Full Article 

Drug Patents

Drug Patents

Novartis sues Cipla over respiratory drug Onbrez   Full Article 

Boost for Tata Steel

Boost for Tata Steel

Tata Steel restarts key iron mines amid shortage  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

India Outlook

India Outlook

ADB trims growth forecasts for developing Asia, says India to grow 5.5 pct in 2014  Full Article 

Real Estate

Real Estate

HDFC to raise $500 mln real estate private equity fund - sources  Full Article 

Banking Sector

Banking Sector

Japan banks to bulk up India presence on improving ties   Full Article 

U.S. Spending Bill

U.S. Spending Bill

Obama signs bill $1.1 trillion government spending bill  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage