Diageo 'pulls out of Stock Spirits sales negotiations'
Diageo has abandoned sales negotiations with Stock Spirits, it has been claimed.
Drinks giant Diageo has pulled out of sales negotiations for Stock Spirits, it has been claimed.
Citing the comments of sources close to the issue, Reuters reports that price was the deciding factor in the move, with Stock Spirits owner Oaktree Capital said to be seeking approximately £500 million.
Unnamed sources went on to state that the pull out means an initial public offering as the most likely option for the future.
"The issue was very much one of valuation. If the seller's idea of a price comes down then Diageo may rejoin the sale process," an industry figure told the publication.
Diageo, which makes Johnnie Walker whisky and Smirnoff vodka, was previously the main interested party in the sales negotiations for Stock Spirits.
Earlier in the month, the industry leader welcomed the findings of a Databank report - which indicated that eight of its brands were among the top 20 premium spirits in the world by volume.