<p>Two UB Group companies of liquor baron Vijay Mallya on Tuesday confirmed that the world’s biggest liquor firm, Diageo Plc, is in discussion with United Spirits (USL) for acquiring a stake, but are not certain that the talks would fructify into a deal.<br /><br />United Spirits and United Breweries (Holdings), belonging to the UB Group, confirmed to the Bombay Stock Exchange seperately that “Diageo Plc is in discussion with both the companies to acquire an interest in United Spirits. However, there is no certainty that these discussions will lead to a transaction”.<br /><br />Addressing reporters after USL’s Annual General Meeting, Mallya said, “Both United Spirits and United Breweries Holdings have issued a statement saying that they are in discussion with Diageo to potentially acquire a shareholding in United Spirits,” adding, “It is in discussion stage and there is no certainty that a transaction will be done.”<br /><br />Media reports last week suggested that the deal between USL and Diageo was in the final lap and the term sheet could be signed this week if valuations were agreed upon. <br />Speculation is rife in the market that Diageo is likely to value USL at around Rs 1,300 per share, while the UB Group is expecting around Rs 1,600 per share for the stake sale.</p>.<p> Among other reports, Britain’s Daily Telegraph last week indicated that Diageo could even get a right to appoint majority of USL board members including the Chairman. It may be noted that the two companies have had talks earlier in 2008-09, but the negotiations invariably stuck over valuations, hence the scepticism and a question mark whether the deal could fructify this time.</p>
<p>Two UB Group companies of liquor baron Vijay Mallya on Tuesday confirmed that the world’s biggest liquor firm, Diageo Plc, is in discussion with United Spirits (USL) for acquiring a stake, but are not certain that the talks would fructify into a deal.<br /><br />United Spirits and United Breweries (Holdings), belonging to the UB Group, confirmed to the Bombay Stock Exchange seperately that “Diageo Plc is in discussion with both the companies to acquire an interest in United Spirits. However, there is no certainty that these discussions will lead to a transaction”.<br /><br />Addressing reporters after USL’s Annual General Meeting, Mallya said, “Both United Spirits and United Breweries Holdings have issued a statement saying that they are in discussion with Diageo to potentially acquire a shareholding in United Spirits,” adding, “It is in discussion stage and there is no certainty that a transaction will be done.”<br /><br />Media reports last week suggested that the deal between USL and Diageo was in the final lap and the term sheet could be signed this week if valuations were agreed upon. <br />Speculation is rife in the market that Diageo is likely to value USL at around Rs 1,300 per share, while the UB Group is expecting around Rs 1,600 per share for the stake sale.</p>.<p> Among other reports, Britain’s Daily Telegraph last week indicated that Diageo could even get a right to appoint majority of USL board members including the Chairman. It may be noted that the two companies have had talks earlier in 2008-09, but the negotiations invariably stuck over valuations, hence the scepticism and a question mark whether the deal could fructify this time.</p>
