Indian liquor maker United Spirits, with market value of about $1.4 billion, indicates to increase stake offer by about 15 per cent to Diageo, the world's largest alcoholic drinks group, in order to successfully close the talks between two companies and to pay debt of $1.2 billion from its purchase of Scottish spirits maker Whyte & Mackay in 2007.

Confirming his intents to offer more to Diageo, Mr. Mallya said, "Absolutely... I have already done it with United Breweries (UBBW. BO: Quote, Profile, Research). I brought in Scottish & Newcastle and they made a public offer. I have already done it before and I don't see why I should have a problem with that now." He also offered representation in board to Diageo without any preliminary condition.

Meanwhile, a spokeswoman for Diageo, said, Diageo can confirm it is reviewing a possible collaboration with United Spirits. However there is no certainty at this stage that these discussions will result in a transaction."

It is to be noted that the offer would lead to a new offer as Indian laws make it mandatory to issue fresh offer in case a firm buys stakes above 15 per cent.