The Hindu Business Line : United Spirits offers $475 m to buy out Whyte & Mackay

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Bangalore Feb. 7 While United Spirits and Whyte & Mackay play the waiting game, one of the options being considered is to take over the Scottish company and list it on the London Stock Exchange and divest up to 49 per cent to the public and institutions.

United Spirits does not want to hurry through the deal and may be willing to walk out if the acquisition does not happen before a certain period of time, sources close to the company told Business Line.

Officials quit

In another development, two marketing officials of Whyte & Mackay, Mr Richard Hayes and Ms Michelle Audette, have quit the company citing personal reasons. The company's Chairman, Mr Vivian Immermann, confirmed the development but said it was not because of the ongoing talks with United Spirits.

United Spirits has offered $475 million to buy out the Scotland-based Whyte & Mackay, which has around 9 per cent of the global whisky market. But Whyte & Mackay is yet to respond to the offer as it wants around $600 million.

However, United Spirits' President and Chief Financial Officer, Mr Ravi R. Nedungadi, said no decision has been taken regarding how the deal will be structured. "We are waiting for them (Whyte & Mackay) to get back to us," Mr Nedungadi told Business Line.

Listing on LSE

Sources said United Spirits might look at listing Whyte & Mackay after taking over the company and divest up to 49 per cent stake in the company to the public and to the institutions. This would allow United Spirits to get part of the investment back and at the same time a listing on the London Stock Exchange. Sources also said that United Spirits was willing to wait as long as it takes for Whyte & Mackay to agree to its offer. "United Spirits has set no specific dates for it to withdraw the offer," they added.

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