India: Supreme Court orders status quo on Diageo-United Spirits deal

Shares of United Spirits and United Breweries gained momentum in trade after the Supreme Court ordered a status quo on Diageo-United Spirits deal, The Economic Times reported on February 10.

The Supreme Court has set aside the Karnataka High Court order which had annulled the United Breweries Holding's (UBHL) sale of its stake in United Spirits to Diageo.

While the order has come as a breather for the Vijay Mallya - owned companies, the apex court has maintained that the winding-up pleas against UB Group will continue in the in Company court.

Notices have been issued by the Supreme Court to lenders on Diageo, UB Group pleas against the High Court order.

The next hearing on Diageo-UB Group plea against the Karnataka High Court order will be in April.

The Karnataka High Court had annulled the Diageo-UB Group following a winding-up petition filed by creditors against UBHL for dues of about Rs 600 crore pertaining to Kingfisher Airlines.

Diageo has agreed to take over United Spirits by buying out shares held by UB Group companies, but its efforts to secure a higher shareholding were thwarted by a tepid response to its open offer.

12 February, 2014