The Vijay Mallya-controlled UB group, the country's largest liquor house, has pulled out of the race for world's sixth largest champagne company, Taittinger.Sources close to the group said the decision was taken after the American real estate group Starwood Capital, which had put Taittinger up for sale less than a year after it bought it from the Taittinger family, asked the UB group to hike its offer by 15-20 per cent.The UB group had offered nearly Rs 3,000 crore for Taittinger and its Californian winery Carneros. It was among the eight bidders shortlisted from 40 interested parties.UB group's offer was "fully priced" and it decided not to "pay out extra for the sake of acquiring a French champagne company", soures said. Standard Chartered Bank was adivising the group on the deal."The UB group was giving final touches to its plan to protect the interestof the shareholders as well as the workers of Taittinger this week. The demand for revising the offer has caught the group it on the wrong foot," sources added. This was the second instance of the group pulling out of a liquor deal.Earlier, it backed out of deal to buy out UK's Invergordon Distillers, part of Whyte & Mackay. The group also pulled out of a race of acquiring Air Sahara.Investment banking sources said French bank Credit Agricole, which had teamed up with some members of the the Taittinger family, was now the front runner for the deal.They said Credit Agricole du Nord Est was working on the financing of the offer Taittinger whose roots date back to the 18th century.
