 "United Spirits-Diageo may have to sell Whyte & Mackay stake")
United Spirits-Diageo may have to divest stake in Whyte & Mackay for the deal between the two companies to sail through, CNBC TV18 reported today quoting sources.
The company is likely to get 12-18 months to divest stake in Whyte & Mackay, which will help Diageo deal with the scrutiny of anti-trust regulators in the UK and Europe easily.
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The talks for the sale will be initiated after United Spirits’ share preferential allotment to Diageo. Reuters[/caption]
However, the company may not be willing to give up control on Whyte & Mackay and will likely sell a stake of up to 35-40 percent, if required, the report said.
The stake sale is likely through a closed bidding process. The report said private equity funds and financial players in the UK are interested in investing in Whyte and Mackay.
The talks for the sale will be initiated after United Spirits’ share preferential allotment to Diageo, it said.
Diageo, meanwhile, told CNBC-TV18 that its intention is to retain the Whyte and Mackay business as part of United Spirits, but said the acquisition was subject to regulatory review and its outcome.