The Hindu Business Line : UB Group may not hike offer price for Champagne Taittinger

Opposition
When Taittinger was sold to Starwood Capital, a US company in July last year, it evoked strong reaction from the French and a similar reaction is expected this time too in case a foreign firm wins the deal.

Bangalore , May 24

The UB Group Chairman, Mr Vijay Mallya, has said that he may not increase the offer price for Champagne Taittinger, even as he hit out at critics who were opposed to his group's takeover move.

Mr Mallya told Business Line that his bid for the French champagne-maker should not be compared with that of Mittal Steel's bid for Arcelor. "There is no comparison between the two," he said. "Arcelor is a big public limited company. Champagne is like a super brand. I see no reason why there should be any opposition to bids from companies outside France," he said. When Taittinger was sold to Starwood Capital, a US company in July last year, it evoked strong reaction from the French and a similar reaction is expected this time too in case a foreign firm wins the deal. He said his group may not have to increase the offer price because its bid is for Taittinger's businesses in France as well as in the US. Mr Mallya said that apart from bidding for Champagne Taittinger, the group is also bidding for the businesses of Loire Valley and the Californian-based Domaine Carncros. "It is a package deal. We are not just bidding for one of the businesses. It is not as simple as that." He said that it may not be necessary for the group to increase the offer price which is around Rs 3,000 crore. This price has put the group a frontrunner among the bidders. According to reports, UB Group is the only bidder for all the three businesses.

Some of the reports said certain Internet blogs and groups in France have opposed UB's bid stating that Taittinger should not be sold to the UB Group. Referring to the issue, Mr Mallya said the group's plans are not going to be detrimental to the interests of Taittinger. "We are serious players. We respect the sentiments of the French and will do nothing to harm their interest. We will in fact enhance the business," he said. He pointed out that apart from the UB Group, some of the other bidders were also from other countries.

More Stories on : Open Offers | Breweries | Overseas Investments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page