United Spirits Ltd puts off talks with Diageo on stake sale

Vijay Mallya's United Spirits LtdVijay Mallya's United Spirits Ltd, the world's third-largest spirits maker by volume, has scrapped negotiations with British spirits major Diageo Plc. The company had also sold treasury stock, held by Shaw Wallace in June, raising about $200 million from the open market.

Ravi Nedungadi, Chief Financial Officer said: "We have decided not to hold strategic discussions right now with Diageo for meeting the funds requirement of the company, as we have started raising them."

Mr. Nedungadi said that the company has sufficient funds with it, and the decision to put off deal talks is not led by global financial crisis. He said that the firm posted 20 per cent rise in sales, on year-on-year basis, despite uncertain conditions of the financial world.

Nedungadi added: "We are impacted by recession so much as by other sectors. Though there is a decline in the pace or quantum of growth, we have grown by 20 percent over the previous fiscal. Sales continue to be good this fiscal too."

Earlier, the United Spirits, according to media reports published in July, too held negotiations with KKR, Blackstone and Capital International to sell stakes.

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