Diageo is in talks to buy a stake of about 20 per cent in Vijay Mallya's in a deal that would give it management control of the Indian distiller, said two people with knowledge of the matter, Bloomberg News reports.
Diageo would buy new shares in United Spirits and also purchase part of Mallya's 28% stake, said the people, who asked not to be identified as the process is private. Diageo would get the right to appoint United Spirits's chief executive officer and other key managers, while Mallya is expected to remain chairman, they said.
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