Diageo looks to buy spirits firm

Liquor company Diageo is in early-stage “exploratory” talks to buy Turkish spirits company Mey Icki in a deal valued at up to $2.5bn (£1.58bn). TPG Capital, the owner of Mey Icki, has been exploring an initial public offering of stock in the company. TPG, which bought the firm for about $800m in 2006, may still pursue an IPO if it fails to reach an agreement to sell the business to Diageo or another private equity firm. TPG has mandated JP Morgan, Goldman Sachs, Credit Suisse and Bank of America Merrill Lynch to run the IPO of Turkish raki producer Mey Icki.