Desperately seeking ... a buyer
All’s well that ends well. That’s how the saying goes. But not in the case of Diageo and its sale of Burger King. After two years of uncertainty - would there be a flotation, a management buy-out of a trade sale "Diageo’s CEO Paul Walsh declared in July this year that he had clinched a US$2.26 billion deal with a private-equity consortium led by Texas Pacific. However, at the end of November, the sale still had not materialised. The consortium now only wants to pay about US$1.6 billion in cash with Diageo retaining a stake.
The news must have filled WestLB Panmure’s analyst Stuart Price with some satisfaction. For almost a year he has maintained that Diageo could improve the exit value of Burger King through securitisation and - eventually - a partial flotation.68 billion (£1.7bn)..
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