W&M tells Mallya to pay $1.3 bn

UB Group, the world's third-largest spirits maker, has been asked to pay £700 million ($1.38 billion) for Scotland's Whyte & Mackay, the Indian distiller's owner, Vijay Mallya, said today.

"I don't like to overpay for anything,'' Mallya said in an interview in Shanghai today. "If we buy, we buy at the right price.''

Bangalore-based UB will decide how much it's willing to pay within two weeks, he said. In March, UB Chief Financial Officer Ravi Nedungadi said United Spirits Ltd, a unit of the Indian distiller, would buy Glasgow-based Whyte & Mackay, owned by Chairman Vivian Immerman and his brother-in-law Robert Tchenguiz. While Nedungadi didn't disclose the price, media reports of a £550 million acquisition were not "off the mark,'' he said.

Mallya, who runs a low-cost airline named after his biggest selling beer brand Kingfisher, is adding international brands and a global sales network to compete with rivals such as Seagram Co and Bacardi Ltd. The acquisition would extend a record year for takeovers involving Indian companies.

Whyte & Mackay was acquired by Immerman, Tchenguiz and investors including West LB in 2001 for £208 million . Both Immerman and Tchenguiz took full control of the company in June 2005.

Founded in 1844, White & Mackay produces W&M scotch whisky, the Dalmore Single Highland Malt, Vladivar vodka and Jura single- malt scotch.

The Indian billionaire was speaking at the launch of UB products in China, aiming to replicate the success of Pernod Ricard SA and other liquor sellers in the world's fastest-growing major economy.

United Spirits today introduced five products, including the most expensive Indian-made whisky Antiquity Blue Rare Premium, its best-selling Bagpiper brand and Premium Romanov Vodka.

The company may introduce premium brands after testing market response for the five initial entry-level products, to be priced between 60 yuan ($7.80) and 120 yuan.