Diageo fails in open offer to buy 26% stake in India-based United Spirits and gain majority control of company, but development unlikely to derail Diageo's plans to acquire company, according to source

LOS ANGELES , April 30, 2013 () – According to a person familiar with the deal, Diageo PLC's open offer to buy a 26% stake in India-based United Spirits Ltd. and gain majority control of the company has failed, The Wall Street Journal reported April 30.

However, it's unlikely that the development will derail Diageo's plans to acquire United, the source added.

On April 10, Diageo offered to buy around 38 million shares of United from existing shareholders at US$26 a share, about  20% lower than the closing price of United Spirits' stock on the day before the offer opened. Investors had till April 26 to tender their shares, but Diageo has so far not shared results of the offer publicly.

The primary source of this article is The Wall Street Journal, New York, New York, on April 30, 2013.

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