The UK-based drinks producer Blavod Black Vodka said yesterday that its negotiations regarding a significant new shareholder and the possible acquisition of a spirits business had progressed further. As a consequence the shares in Blavod had been suspended forthwith.

In a statement Blavod said the negotiations now meant that it was contemplating a transaction that would amount to a reverse takeover of the Company.

However it said: "The discussions are still at a very preliminary stage and there can be no assurance that any transaction will ultimately take place."