Diageo confirms General Mills-Pillsbury talks

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LONDON--London-based food and spirits giant Diageo has confirmed it is in talks with Minneapolis-based General Mills about merging its Pillsbury U.S. food unit with General Mills.

"Diageo and General Mills are engaged in discussions concerning potential business combination with Pillsbury. There is no certainty that these discussions will lead to a transaction," Diageo said in a statement.

Diageo declined to make any additional comments "until an agreement has been reached."

In a possible deal, Diageo could keep a large minority stake allowing it to focus on its liquor and beer business, according to local reports. Pillsbury's brand names include Haagen Dazs ice cream, Green Giant Frozen foods and Old El Paso Mexican foods.

Copyright July 2000, Crain Communications Inc.

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