Diageo's bid to sell its Burger King chain may have to be put on hold as a potential buyer said it wants to renegotiate the deal in light of worsening conditions in Burger King's markets.
Last July the global food and drinks proposed to sell Burger King for $2.26 billion to a consortium of private equity companies that included Texas Pacific Group.
Completion of the deal depended on certain performance targets being met in the interim period when financing was put in place.
The group requested further talks with Diageo about the deal because of the weakness in world markets. The talks are taking place and will continue over the next few weeks, Diageo said.
Diageo said the outcome of the talks remains uncertain but may or may not lead to the termination of the deal.
Diageo shares dipped 15p, or 2 per cent, to 703p in London this morning.