DIAGEO EYES STAKE IN UNITED SPIRITS

Rumors are surfacing that Diageo may buy a 10% to 13% stake in Vijay Mallya’s United Spirits, based in India. The Economic Times reports the stake could cost as much as $600 million. United Spirits denied that it was in negotiations with Diageo to sell a stake, the report said, and Diageo refused to comment.

Diageo recently jumpstarted a price war in India’s Scotch whisky market by cutting prices by more than 30%. The move was followed by Pernod and LVMH, apparently as a reaction to Vijay Mallya’s purchase of Whyte & Mackay, according to The Scotsman. The price war is expected to increase volume over 35% within the next three years.