Diageo has decided to opt for a sale of Burger King to managers rather than float the restaurant chain, the Financial Times claims.
The British parent company is expected to confirm the decision within the next few weeks.
The eventual price could be £1.5bn which is less than the £2bn-£2.5bn analysts had previously forecast for flotation.
Burger King's chairman and chief executive, John Dasburg, will brief the media on strategy on February 20. Diageo will report its interims the next day.
Texas Pacific, the American venture capitalist behind Punch Group, is named as one of the most likely backers of a bid by Dasburg and his colleagues.
The City thinks a share buy-back worth up to £1.4bn could be announced with the interims.
Diageo fell 28p to 820p on a downgrade from Goldman Sachs to "market perform" from "market outperform" on valuation grounds.
The broker reiterated its 800p target and advised investors to take profits. However, Goldman Sachs was upbeat about the group's long-term prospects.
The British parent company is expected to confirm the decision within the next few weeks.
The eventual price could be £1.5bn which is less than the £2bn-£2.5bn analysts had previously forecast for flotation.
Burger King's chairman and chief executive, John Dasburg, will brief the media on strategy on February 20. Diageo will report its interims the next day.
Texas Pacific, the American venture capitalist behind Punch Group, is named as one of the most likely backers of a bid by Dasburg and his colleagues.
The City thinks a share buy-back worth up to £1.4bn could be announced with the interims.
Diageo fell 28p to 820p on a downgrade from Goldman Sachs to "market perform" from "market outperform" on valuation grounds.
The broker reiterated its 800p target and advised investors to take profits. However, Goldman Sachs was upbeat about the group's long-term prospects.
