Mar 26, 2013 04:01 PM IST | Source: Moneycontrol.com

Diageo to launch open offer next week, United Spirits down

Shares of United Spirits fell more than one percent on Tuesday. Media reports indicated the UK-based spirits major Diageo is finally set to launch its open offer to buy an additional 26 percent stake in United Spirits (USL) by next week.

Diageo to launch open offer next week, United Spirits down

Shares of United Spirits fell more than one percent on Tuesday. Media reports indicate that the UK-based spirits major Diageo is finally set to launch its open offer to buy an additional 26 percent stake in United Spirits (USL) by next week.

However, the offer, to be launched at a price of Rs 1,440 a share, won't garner support from minority shareholders, as today, at Rs 1,908 a share, the market price was higher, newspaper Business Standard said quoting a banker in its report.

On November 9, Diageo had announced the acquisition of 27.4 percent stake in USL from Vijay Mallya and his holding companies. It had also announced an open offer to increase its stake to 53.5 percent.

At 10:55 hours IST, shares went down 0.83 percent to Rs 1,884.90 on Bombay Stock Exchange.

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