The Hindu Business Line : United Spirits won't raise offer price for Whyte & Mackay

United Spirits has said that it will not raise its offer price for taking over Scottish company Whyte & Mackay, days before officials from both the companies are expected to meet to finalise the deal.

"There is no question of raising our offer price," UB Group Chairman, Mr Vijay Mallya, told Business Line. The unsolicited offer price from United Spirits, which is a part of the group, is learnt to be around $475 million though Whyte & Mackay has asked for around $600 million, according to market sources.

Top honchos from both the companies are expected to meet on January 15 to finalise the deal.

The UB Group has so far kept away from revising its offer price for its recent bids.

For Air Sahara, the group withdrew from the bidding process after Jet Airways, the eventual winner, raised the offer price.

It again withdrew its bid for French company Champagne Taittinger after its competitor raised the offer price.

On both occasions the Group said that it was withdrawing the bids because the revised prices did not justify the valuations.

But market analysts said that this time around the Group may be much closer to acquiring Whyte & Mackay than it was on earlier occasions for other businesses.

In fact, the Whyte & Mackay Chairman, Mr Vivian Immerman, had told Business Line last month that the acquisition would be completed towards the end of January.

He confirmed that the deal was for 100 per cent buyout of the company and all its brands, including Isle of Jura and Dalmore single malt whiskies, Vladivar Vodka and Glayva liqueur.

Whyte & Mackay, which has nine per cent of the global whisky market, sells more than 50 per cent of the volumes as private label Scotch.

Mr Immerman and an Iranian industrialist, Mr Robert Tchenguiz, are the main investors in the company.

The UB Group is expected to part-fund the acquisition of Whyte & Mackay by selling a part of 17 million shares it has deposited in a trust for this purpose.

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