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.

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.

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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