BK sale still on after offer cut

Diageo is still hoping to sell off the Burger King fast-food chain by the end of the year, despite the interested buyer substantially cutting its original offer.

The buyer, a group of US venture capitalists led by Texas Pacific Group (TPG), has cut its offer from $2.3b (£1.4b) to $1.8b (£1.1b), citing the poor performance of the burger restaurants, especially in the USA, over the past two months.

Diageo said: "TPG and its partners would not be able to complete the acquisition of the Burger King Corporation on the terms previously agreed," but added: "TPG and its partners expressed a desire to continue in discussions towards a transaction materially different as to terms and structure."

Diageo is prevented from opening up the sale to other interested bidders while its exclusive talks with TPG continue.

Source: Caterer & Hotelkeeper magazine, 21-27 November 2002