United Spirits stake sale, only way Mallya can keep Kingfisher in air

Bangalore/New Delhi: UB Group chairman Vijay Mallya may have to bite the bullet and sell stake in cash-cow United Spirits Ltd (USL) to save Kingfisher Airlines.
Looking to pick a stake in Mallya’s crown jewel is UK-based Diageo plc. Mallya and the group’s holding company, UB Holding, own 28 per cent in United Spirits.
Sources close to the group say Mallya is vehemently opposed to the airline being dragged to the BIFR (Board for Industrial and Financial Reconstruction) as it is too important a group company to be termed sick. Once it becomes a BIFR case, Mallya will, however, not be harassed by lenders as the loans will get restructured. But the Board also has the powers to close down the company or put it up for sale to recover dues of lenders.
25/08/12 K Giriprakash/Ashwini Phadnis/Business Line

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Categories: Kingfisher Aug 2012