"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.