Whyte & Mackay wants Mallya to shell out more
The Vijay Mallya-led UB group emerged front-runner with $870 million bid to acquire the Glasgow-based company
Bob Brannman, managing director, is insisting that the acquirer would have to pay the potential price and not the current price of the company
Whyte & Mackay is arguing that the company was going through the final stage of a $190 million restructuring which can yield rich dividend in the long run
Investment bankers confer that there are differences between Mallya and Whyte & Mackay over pricing of the deal
Distillers Whyte & Mackay has indicated that liquor baron Vijay Mallya would have to pay a premium if he wanted to acquire the Glasgow-based company.
Mallya had reportedly emerged front-runner for taking over the closely-held distiller Whyte & Mackay with a bid of nearly $870 million.
Bob Brannman, managing director, Whyte & Mackay, was quoted in the foreign media as saying that the acquirer would have to pay the potential price, and not the current price, of the company. Investment bankers confirmed that there had been differences between Mallya and Whyte & Mackay over pricing.
They added that the foreign company was asking $150 million more than the price quoted by Mallya. Mallya is believed to have been in talks with ICICI Bank for financing the deal.
They said Whyte & Mackay’s argument for higher price was based on the fact that the company was going through the final stage of a $190 million restructuring which would yield dividend in the long run. The company has begun brand relaunch, expansion of distribution network and investment in the new bottling plant.
Mallya is interested in taking over an UK distiller so that he would use the network to sell his whiskies and rums in Europe.Whyte & Mackay Chairman Vivian Immerman last year took full control of the company and subsequently put it on the rails. It has been a target for last six months as its balance sheet improved.
In the year ended September 30, 2005, Whyte & Mackay has posted 28 per cent growth in operating profits to $21 million and 4 per cent rise in turnover to $283 million.
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