Diageo poised for buy in India
Drinks giant Diageo is set to buy a 14.99% stake in India's United Spirits, according to reports in Mumbai.
The stake is likely to fetch up to $500 million (£332.3 million), about twice its current value at yesterday's share price.
United Spirits shares have fallen 61% this year, cutting its market value to 77.4 billion rupees (£1.04 billion).
Chairman Vijay Mallya has already acknowledged that he and Ivan Menezes, Diageo's president for North America, have had talks about a possible sale.
United last month said it was in talks with more than one company for an alliance.
Mallya now says those talks are exclusive.
The Economic Times newspaper says other Diageo bosses including Asia-Pacific chief John Pollaers and Indian head Asif Adil have met United executives to discuss broad contours of the alliance.
That may also include integrating the global giant's local operations with the Indian company over time.
