Mumbai, Nov 13 - Diageo Plc is in exclusive talks to buy a minority stake in India's United Spirits Ltd, the world's No. 3 spirits maker by volume, the Economic Times newspaper reported on Thursday.
"There was a meeting with Diageo yesterday. We have entered into exclusive discussions with them for a limited period," United Chairman Vijay Mallya told the paper, which said he declined to give more details.
Diageo, the world's biggest alcoholic drinks group, could buy 14.99 percent initially in the Indian company, get two seats on its board and establish an Indian distribution partnership, the report said.
The paper, citing unnamed sources, said United Spirits was seeking to price the deal at almost double Wednesday's closing share price of 771.1 rupees, with the stake sale raising $450 million to $500 million.
The proceeds could be used to reduce United's debt of $1.2 billion from its purchase of Scottish spirits maker Whyte & Mackay in 2007, the paper said.