Diageo Takeover Rumours (DGE)

Times Business today has an article on potential takeover targets due to low valuations in London. One of the companies they feature is Diageo: “ Diageo Banking sources took the unusual step this month of denying there was any dealmaking afoot when The Times reported rumours of a bid for Diageo. The FTSE 100 drinks maker had a wobble recently when it issued a profit warning, started a search for a new chairman and brought in Rothschild's bankers to serve up Pimm's to new - investors. Jefferies' analysts said they had no idea if anyone would want to buy Pimm's. Debra Crew, Diageo's new chief executive, has been having "tough conversations" about how to restore the company's reputation as a solid stock. Diageo's share price now sits at £29.86 and, with food and - beverage businesses attracting average premiums of 41 per cent, it is thought that the guardian of Guinness could change hands for £94 billion.

Have we got some takeover rumours circling ??