Diageo winds up with 25 pct stake in United Spirits
LONDON, July 4
LONDON, July 4 (Reuters) - Global drinks firm Diageo said on Thursday it had acquired a 25 percent stake in India's United Spirits, considerably less than the London-listed firm had originally hoped for.
In November, Diageo said it was buying 27.4 percent of United Spirits directly from the Indian group, which is controlled by tycoon Vijay Mallya.
It also launched a mandatory offer for another 26 percent on the open market.
But some lenders refused to release security over 3.5 million shares held by the United Spirits benefit trust, equivalent to a shareholding of around 2.4 percent, Diageo said.
And its open offer largely failed, with the company acquiring only a small fraction of shares in this way, after Diageo decided not to lift its offer price despite a surge in the value of United Sprits shares earlier this year.
Diageo said it would now begin to implement its own operational and governance standards at United Spirits, but that this could involve greater management time, costs and resources than originally expected.
- Tweet this
- Share this
- Digg this
- Google's Pichai to oversee major products and services
- Modi takes tea, but no questions, in first press event as PM
- UPDATE 2-Motor racing-Caterham and Marussia to miss next races - Ecclestone
- Two killed, four wounded in Washington state school shooting
- Finance Minister Arun Jaitley favours interest rate cut - paper
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Euro zone risks "relapse into recession" without structural reforms - Draghi. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article