27th Apr 2015 06:01
LONDON (Alliance News) - Drinks company Diageo PLC is facing a potential issue over its GBP1.8 billion acquisition of India's United Spirits Ltd amid a stand-off with the company's former controlling shareholder and current chairman over allegations of past fund diversions, the Financial Times reported on Sunday.
The board of United Spirits, which is 55% owned by Diageo, over the weekend asked Vijay Mallya to step down from his role after a probe found improprieties in financial transactions between United Spirits and Kingfisher Airlines, the now-collapsed Indian carrier also owned by Mallya, between 2010 and 2012, the FT said.
But Mallya rejected the demand, describing the conclusions of the investigation as based on "half truths and twisted facts".
http://www.ft.com/cms/s/0/02f569fa-ebbd-11e4-86ba-00144feab7de.html#axzz3YUBqJxb2
By Sam Unsted; [email protected]; @SamUAtAlliance
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