Diageo is expected to announce plans to extend its share buyback programme by £300m to £1bn on Thursday despite a slide in full-year profits to around £2bn. With chief executive Paul Walsh barred from any more sizeable acquisitions, City analysts think he will return more cash to shareholders. Profits are flat because although American performance has been good, trading is proving tough in Europe. Emerging markets in Brazil, China and India have been unable to compensate. Despite that, some observers expect Diageo's forecasts to be subject to upgrades rather than downgrades. Investors though will want to know how Walsh intends to combat global competition, particularly from Pernod Ricard. The Mail on Sunday 28/08/05 (Financial Mail) page 5 The Independent on Sunday 28/08/05 (Business) page 11 The Business 28/08/05 page 3 The Sunday Telegraph 28/08/05 (Business) page 6

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