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.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

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.

Advertisement
Advertisement - Article continues below

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

Advertisement

Recommended

Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Visit/investments/stocks-and-shares/share-tips/600636/class-acts-going-cheap-buy-into-europes-best
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular

Visit/economy/global-economy/600991/helicopter-money-is-coming-very-soon-but-what-form-will-it-take
Global Economy

Helicopter money is coming very soon – but what form will it take?

We’re heading for a”new normal”, says John Stepek – fiscal stimulus, and lots of it. Here’s what that really means.
16 Mar 2020
Visit/investments/600992/the-helicopters-are-being-warmed-up-we-might-be-closer-to-a-bottom-than-you
Investments

The helicopters are being warmed up – we might be closer to a bottom than you think

Governments are starting to act to bolster their economies against coronavirus. But, asks John Stepek, will throwing money at the problem slow the mar…
17 Mar 2020
Visit/investments/funds/investment-trusts/600975/now-could-be-a-good-time-to-bag-an-investment-bargain
Investment trusts

Now could be a good time to bag an investment bargain

We like investment trusts here at MoneyWeek. And they can be even better during a market crash.
16 Mar 2020
Visit/investments/stockmarkets/european-stockmarkets/600725/is-2020-the-year-for-european-small-cap
Sponsored

Is 2020 the year for European small-cap stocks?

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, on why he believes European small-cap stocks are performing well.
12 Feb 2019