Mallya's fresh French overture: to buy $15mn winery

Vijay Mallya-controlled UB Group is looking to buy a wine company owned by French brewer Taittinger for $ 15 million (Rs 68 crore).

Mallya today said UB group was looking to acquire a "small portion"  of the Taittinger group.

"We are looking to acquire this company over the next few weeks," he said on the sidelines of CII-organised India Innovation Summit 2006. "The reason (for the acquisition) is, it gets United Spirits into high quality wines which we will import and sell in the Indian market."

Asked if UB is still in the race for acquiring Champagne assets of Taittinger, Mallya replied in the negative.

"We bid but (French Bank) Credit Agricole was the winning bidder. There was a sentiment that Champagne assets should remain in French hands. So, we gracefully bowed out of the process. I am not prepared to get into a bidding war because that would have diluted shareholder value of United Spirits. That was something I was not prepared to do," he said.

Mallya said the proposed acquisition of Taittinger's wine assets in France would also give UB access to wine technology of the highest order, which it will use to develop in its own vineyards and wineries in India in a proper and sustainable form.

"Its a small acquisition costing approximately $ 15 million which would be funded out of the company cash flows," he said.