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United Spirits may sell 15% stake to Diageo to cut debt

United Spirits, the Indian drinks giant controlled by flamboyant tycoon Vijay Mallya, may be prepared to sell a 15%-plus stake and give board representation to Diageo in a move aimed at reducing the Bangalore behemoth's debts, it emerged yesterday. However, both Mallya, often cited as India's version of Richard Branson, and Diageo, the world's largest alcoholic drinks group, insisted there was no certainty a deal would struck over talks that began between the two parties last year. In recent months, media reports have intensified claiming that Mallya would use the proceeds from the stake sale to reduce debts of around £835m largely from its near-£700m acquisi- tion of Glasgow-based distiller Whyte & Mackay in 2007. […]