25th Aug 2005 07:02
Diageo PLC25 August 2005 24 August 2005 Diageo purchases put options over 25 million General Mills shares On 24 August 2005, Diageo and Lehman Brothers International (Europe) enteredinto a put option agreement under which Diageo purchased European-style putoptions exercisable beginning 4 November 2005, covering 25 million shares ofcommon stock of General Mills from Lehman Brothers. Under this agreement, Diageohas the option to sell all of its remaining 25 million shares of common stock ofGeneral Mills to Lehman Brothers for settlement over five business days between4 and 10 November 2005, for the exercise price of $51.56 per share. The premiumto be paid by Diageo for the put options is $5.56 per share, payable at the timeof settlement. While the sale of these shares is subject to market conditionsand contractual restrictions, Diageo is committed to the disposal of itsholdings in General Mills and previously sold in 2002 call options to GeneralMills for a premium of $3.07 per share. Diageo views this transaction as aneffective hedge for the disposal proceeds of its remaining stake in GeneralMills. Diageo will continue to retain the rights to ordinary dividends while it remainsan owner of the General Mills shares. Commenting, Paul Walsh, CEO of Diageo, said ' We are delighted to be able to make this announcement today. This transactiongives us certainty as to the disposal proceeds we would receive from a disposalof our remaining holding in General Mills which could take place in Novemberthis year at $1,154 million net of costs. Coming as it does less than two months after the refinancing of Burger King,Diageo is now fully focused on its position as the world's leading premiumdrinks company '. -ends-Contact details Investor Relations:Michael Mulhall +44 (0) 20 7927 5272 [email protected] Padgett +1 202 715 1110 [email protected] Media Relations:Isabelle Thomas +44 (0) 20 7927 5967 [email protected] Note to editor:Diageo is the world's leading premium drinks business. With its global vision,and local marketing focus, Diageo brings to consumers an outstanding collectionof beverage alcohol brands across the spirits, wine and beer categoriesincluding Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Jose Cuervo, CaptainMorgan, Tanqueray, Beaulieu Vineyard, Sterling Vineyards and Chalone wines.Diageo trades in some 180 countries around the world and is listed on both theNew York Stock Exchange (DEO) and the London Stock Exchange (DGE). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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