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Monday, 8 June 2015

DIAGEO SHARES ROCKET ON BRAZILIAN BILLIONAIRE BUYOUT RUMOURS

The Diageo stock price rocketed early on Monday on rumours that Brazilian billionaire Jorge Paulo Lemann is looking to buyout the world's largest producer of spirits.

Shares in the London-listed company jumped by over 8% within the first 10 minutes of trading.

diageo



According to a report by Brazilian newsweekly Veja, without citing how it obtained the information, it said that Lemann and his partners, Marcel Telles and Beto Sicupira, at private equity firm 3G Capital are considering a potential bid for Diageo.

Diageo produces a number of world famous brands, including Johnnie Walker whisky, Smirnoff vodka, and Guinness beer.

In April, Diageo said in an interim management statement that in the nine months ending March 31 2015, net sales declined 0.3%.

"Our performance in the quarter reflects continued tough conditions in the emerging markets and subdued consumer demand in some developed markets," said Ivan Menezes, CEO of Diageo. "However it also reflects the actions we have taken to ensure we are building a stronger business.

"Of key importance is that depletions continue to outpace shipments as we embed our sell out culture. In addition, our decision to destock some wholesale channels in South East Asia and West LAC will improve our ability to track consumer and customer trends and reduce future volatility."

Business Insider

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