I put some money on these and it went up few months ago. Pulled the money out and put it elsewhere. Is it worth putting more money on them now?

.
Diageo set to buy stake in Mallya's United Spirits: report
AFP – 1 hour 34 minutes ago.. .
.

The world's largest spirits maker Diageo (Xetra: 851247 - news) has reached a deal with Indian liquor baron Vijay Mallya's UB Group to buy a stake in United Spirits, the Press Trust of India news agency reported late Thursday.

The agreement could be announced Friday, the Indian news agency quoted unnamed sources as saying, while Indian television channels reported Mallya flew to London on Wednesday, accompanied by UB executives, to discuss a deal.

Britain's Diageo Plc has been engaged in talks to acquire a stake in United Spirits to gain a stronger presence in India's lucrative spirits market where it trails global rival Pernod Ricard (Dusseldorf: 508063.DU - news) of France.

The Press Trust of India said no other details were available about the deal but earlier this week India's Mint business daily said Diageo was set to pick up a 51 percent stake in United Spirits in a transaction worth around $2 billion.

The transaction would involve the direct purchase of a portion of Mallya's holding, the issue of fresh shares and an open offer to buy stock from public shareholders, Mint said.

A UB Group spokesman declined to comment on the Press Trust of India report while no response was immediately available from Diageo, whose previous talks with Mallya to acquire a stake in United Spirits fell apart in 2009.

In September, Diageo -- makers of Johnnie Walker whisky -- announced it was in discussions with United Spirits and parent United Breweries (BSE: UNIBW.BO - news) to possibly "acquire an interest in United Spirits".

Mint newspaper had said it was unclear what stake Mallya would have in United Spirits if the deal went through.

The money from the sale could allow Mallya to reduce United Spirits' hefty debt and inject funds into his cash-strapped Kingfisher Airlines.

Last month, India's aviation regulator suspended the flying licence of the debt-laden airline, citing safety concerns. The airline has not flown since October 1 following a pay dispute with workers.

Mallya has said he will present a "comprehensive" plan to the government to revive the carrier, whose licence expires December 31.

United Spirits, whose shares have surged on expectations of a deal with Diageo, is the flagship company of Bangalore-based UB Group and sells such brands as Bagpiper and Royal Challenge in India.

Mallya would remain chairman of United Spirits but Diageo would take control of managing the company, Indian media reports said.

Diageo buys big stake in USL
Fri 09 Nov 2012

DGE - Diageo

Latest Prices
Name Price %
Diageo 1,803.00p +0.78%

FTSE 100 5,770 -0.11%
FTSE 350 3,079 -0.16%
FTSE All-Share 3,015 -0.16%
FTSEurofirst 300 1,097 -0.11%
Beverages 12,840 +0.63%

LONDON (SHARECAST) - Drinks behemoth Diageo is to spend over one billion pounds taking a majority stake in Indian spirits firm USL.

The firm will initially pay 660 million pounds for a 27.4% stake in USL, the biggest spirits company in India.

This deal will trigger an obligation on Diageo to launch a mandatory tender offer to the public shareholders of USL.

Consequently Diageo has also announced that it will launch a tender offer to acquire a maximum of 37,785,214 shares, which equates to 26% of USL's shares.

When the deal is complete Diageo will hold 53.4% of USL at an aggregate cost of around £1.29bn.

Paul S Walsh, Chief Executive of Diageo, said growth in the Indian market was being driven by the increasing number of middle class consumers looking to buy premium and prestige local spirits brands as income levels rise.

"The combination of USL's strong business with the capabilities which Diageo brings as the world's leading premium drinks company will ensure that USL continues to lead the industry in India," he said.

Diageo: Nomura raises target from 2,000p to 2,100p, buy rating kept

Broker snap: Diageo's USL deal comes at the right time, says Nomura
Mon 12 Nov 2012


LONDON (SHARECAST) - Nomura has raised its target price for beverages giant Diageo from 2,000p to 2,100p and retained its 'buy' recommendation for the stock, following last week's deal to buy a stake in Indian spirits group United Spirits Limited (USL).

Diageo said on Friday that it is to acquire a 27.4% stake in USL for around £660m and announced a tender offer to buy an additional 26% stake (53.4% interest in total), which now means that the company generates 45% of revenues from emerging markets, "well on the way to the target of 50% by 2015", Nomura said.

The broker said: "Announcement of this deal ahead of Diwali next week means that the celebrations can really begin, with the company gaining control whilst retaining a significant local minority interest."

Nomura said that the deal represents a "very significant medium-term upside potential in India" for Diageo. USL's volumes last year matched Diageo's (121m cases of spirits), but the cost to buy the majority stake (£1.3bn) is a fraction of Diageo's enterprise value at over £50bn.

"We see very significant opportunity to add value through premiumising local spirit and leveraging the distribution platform for international spirits, especially Scotch whisky."

Meanwhile, Nomura said that a "likely" reduction in import tariffs on scotch could add over $400m to the profile pool for scotch in India (versus the current estimate of $40m) "with the company in a good position to capture the lion's share".

Shares were up 0.41% at 1,810p in mid-morning trade on Monday.

:-))

Why sell,Dreamy? Do you know something we don't? I've held since March 2006 and can't see any reason to get rid at the moment. More than doubled with re-invested divis.

Dont worry its not going to crash.

Let me know your next new lead then, please.

Lol

We know that Santa loves a tipple. We leave a sherry out for him every year and he never knocks it back.

One of the FTSE 100's most successful companies in recent years has been Diageo. In the last five years, the shares are up 73.2%. In that time, dividends have been increased, on average, 5.9% per annum. This has been surpassed by average annual EPS growth of 14.0%.

The good news doesn't end there. For the current financial year, Diageo is expected to report earnings growth of 10.7%. This is forecast to be followed by an 11.7% increase the year after. Similar progress in the dividend is also expected.

This puts the shares on a 2014 price-to-earnings (P/E) ratio of 15.9 times earnings. The expected yield for 2014 is 2.9%.

Interim Results

Results summary

· 5% organic net sales growth with 1% organic volume growth

· 70 basis points of organic gross margin improvement

· 5% organic growth in marketing focused on the faster growing markets

· 110 basis points of organic operating margin expansion

· 9% organic operating profit growth

· Faster growing markets are 42% of Diageo's net sales in the half and delivered organic net sales growth of 14% and operating profit growth of 21%

· Acquisitions made in the past two years added £0.3 billion to net sales in the half

· Free cash flow improved more than £100 million to £0.7 billion

· eps pre-exceptional items up 9% to 60.9 pence per share

· 9% increase in interim dividend

Preliminary Results


Results show Diageo is a strong business getting stronger


· Net sales growth of 5%, driven by 4 percentage points of positive price/mix

· Operating profit growth of 8%, driven by 0.8 percentage points of margin expansion

· Marketing investment up 5%, to 15.7% of net sales, focused on the strategic brands

· Strong performance in North America with net sales up 5% and operating profit up 9%

· Emerging markets' net sales are 42% of Diageo's business, following 11% net sales growth and acquisitions which added £233 million

· Emerging markets operating profit up 18%, as increased scale led to operating margin expansion

· Acquisition of the Ypióca brand in Brazil in August 2012

· Free cash flow was £1.5 billion, after making a £400 million contribution to the UK pension scheme

· Growth of 11% in eps pre-exceptional items, to 104.4 pence per share

· Board recommending a 9% increase in the final dividend

· Increased stake in Shuijingfang and acquired the major interest in USL since the year end

If your looking in Buzzing could you put the chart in the header please?

Diageo: Bank of America raises target from 2250p to 2450p and keeps its buy recommendation

Diageo: Citi increases target from 1830p to 2320p upgrading from neutral to buy.

Oversold?



Trading statement on 17th October.

JP Morgan Cazenove Overweight 0.00 2,200.00 2,050.00 Reiterates

Nomura Buy 0.00 2,350.00 2,300.00 Retains

Bank of America Merrill Lynch Buy 0.00 2,450.00 2,450.00 Reiterates

Just gone long @1898p

Closed half +25p

Berenberg Buy 0.00 1,921.00 2,250.00 2,250.00 Retains

Exane BNP Paribas Outperform 1,946.00 1,921.00 2,033.00 - Upgrades