United Spirits, Diageo Plc deal: Supreme Court orders 'status quo' till April

Reuters Posted online: Monday, Feb 10, 2014 at 0000 hrs
New Delhi : Supreme Court of India on Monday directed that the 'status quo' be maintained in the sale of United Spirits Ltd to British group Diageo Plc until April, when the court will hear the matter again.

In December, a regional court ordered the annulment of the sale in response to a petition by creditors of United Breweries (Holdings) Ltd , which sold its stake in United Spirits to Diageo through a complicated share transaction.

Diageo had said it will appeal the decision.

The Supreme Court issued a notice to both United Spirits and Diageo on Monday and said it would hear the matter at length.

Diageo completed its takeover of United Spirits in July, almost eight months after the companies announced the deal because of legal and regulatory difficulties.