Diageo delays tender offer, source says

Shares in beverages giant Diageo dropped lower on Monday after reports that its mandatory share tender offer to acquire a further stake in Indian spirits group United Spirits has been delayed in the absence of regulatory approval from the relevant Indian authorities.

Shares in beverages giant Diageo dropped lower on Monday after reports that its mandatory share tender offer to acquire a further stake in Indian spirits group United Spirits has been delayed in the absence of regulatory approval from the relevant Indian authorities.

According to Reuters, the reports are said to come from a "source with direct knowledge" of the matter.

The offer had been scheduled to open on Monday and close almost two weeks later on January 18th.

The deal, which was announced back in December, will see Diageo pay 1.3bn pounds for an additional 26% stake in United Spirits, giving it a 53.4% stake altogether.

The tender offer, which comes as part of a two-stage deal, is now expected to rescheduled once the necessary approvals have been received.

United Spirits, the world's largest spirits group, is operated by Indian businessman, Vijay Mallya.

Shares in Diageo fell 0.74% to 1,811p by 14:25 on Monday.

NR

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021