Diageo, the UK drinks company has raised its bid offer for United Spirits of India through a public offer. It is unlikely to succeed without an offer to lift its price but it is still on its way to gain management control of India's largest spirit maker.
The current tabled offer is at 1,440 rupees per share for 26% of the Indian liquor manufacturer. The majority of the shares in United Spirits is still held by Indian tycoon Vijay Mallya.
Under the terms of the original deal drafted back in November, Diageo is purchasing 27.4% of United Spirits from Mallya's shareholdings. Should Diageo fail to gain the majority control wit the open offer, then United Breweries Holdings Ltd, Mallya's investment arm, would remain on the board to vote with Diageo.
The new tender offer was due back in March but was delayed due to Indian regulatory approvals. Mallya's United Breweries Group declined to make a comment. Diageo, the makers of Johnnie Walker and Guinness Beer, also did not provide any comment on the transaction.
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