Mumbai: Liquor baron Vijay Mallya's Rs 3,000 crore bid to acquire French Champagne major Taittinger has been virtually beaten by a rival firm, which has quoted a 15 per cent higher price for the brewery.
"A French company is going to buy Taittinger at a crazy price. UB Group has evaluated the company and is unlikely to increase its valuation," an informed source said.
UB group had valued Taittinger at Rs 3,000 crore. Market sources speculated that Taittinger family, backed by French bank Credit Agricole, is close to finishing the deal.
There were two French bidders and the workers council of Champagne Taittinger are believed to be opposing Mallya's bid for the company, as they want the seller, US-based Starwood Capital, to prefer a French bidder.
About six bidders had been short-listed for Taittinger buyout and Mallya's bid was amongst the highest.
US-based Starwood Capital, which had acquired Taittinger last year, plans to sell the company, globally selling around 4.5 billion bottles of champagne and wine a year.
Last week, Mallya said that he has made a bid to acquire Taittinger for nearly Rs 3,000 crore-a move that would give UB group access to network and distribution channels across Europe.
"Taittinger has got a huge distribution channel in France all over Europe. I can sell United Spirit products using that distribution channel," Mallya added.
Last year, UB Group had acquired Shaw Wallace for USD 354 million, which made the Indian liquor major, the world's second largest liquor group.
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