Vodka giant sparks sale rumour

SWEDISH drinks giant Vin & Sprit Group, maker of Absolut Vodka and one of the world's ten largest drinks companies, has scheduled a presentation for City analysts, leading to speculation that it may be planning to raise funds in the UK by selling shares.

The group, which has produced more than a billion bottles of Absolut since 1979, is owned by the Swedish government, but there have been rumours that it may look to sell off part of its holding.

The presentation at London's Waldorf Hotel will also be made to V&S Group's bankers. It is thought that chief executive Bengt Baron, an Olympic swimming gold medal winner, will attend.

A company spokeswoman described the presentation as 'nothing special' and claimed it was something that the company did 'every so often'.

She added: 'It is for bankers and people that we have relationships with.'

V&S Group, which markets its brands in 125 countries, enjoyed total sales worth nine billion Swedish kroner (£730m) last year.

Absolut is the third-biggest international spirits brand, after Bacardi rum and Smirnoff vodka.

Last year, the Swedish government appointed five international investment banks and four local advisers to help it manage state companies and assets worth about 400bn Swedish kroner (£32.6bn).

More than 30 banks pitched for the two-year contracts to give the government advice on restructurings and possible sell-offs.

Sweden's government also owns 100% of power company Vattenfall, 46% of telecom company TeliaSonera and significant stakes in Nordea bank and airline SAS.

There is a long history of state involvement in the alcohol industry in Sweden as part of an attempt to curb consumption.

V&S Group recently announced a 24% fall in operating profits to 950m Swedish kronur for the nine months ending September.

The decline was blamed on the weaker American dollar, and the company said that discounting that effect, net sales would have increased by about 265 million Swedish kroner.