Diageo walked away from talks with UB Group in 2009

Diageo walked away from talks with UB Group in 2009

Diageo and the UB Group have confirmed that they are in talks over taking a stake in United Spirits.

The confirmation today (25 September) follows months of speculation linking Diageo and UB Group, which controls the United Spirits. UB, which also owns Kingfisher Airlines, is struggling with major debt issues, with Kingfisher veering close to bankruptcy.

Previous talks collapsed in 2009 after Diageo walked away, saying it had been unable to agree a value for a stake in United Spirits.

Diageo noted in the joint statement that "there is no certainty that these discussions will lead to a transaction".

United Spirits share price rose markedly following the announcement this morning.

To read the official announcement, click here.