Diageo shares dip on US SEC's regulatory probe
Drinks maker Diageo was under the cosh on Friday after the US Securities and Exchange Commission said it has launched an investigation into whether the company has been shipping excess stocks to customers to boost its results.
Beverages
22,117.60
15:55 29/04/24
Diageo
2,771.50p
15:55 29/04/24
FTSE 100
8,154.42
15:55 29/04/24
FTSE 350
4,483.28
15:55 29/04/24
FTSE All-Share
4,436.86
15:55 29/04/24
The company said in a statement: "Diageo has received an inquiry from the US Securities and Exchange Commission regarding its distribution in the United States. Diageo is working to respond fully to the SEC's requests for information in this matter."
Despite the negative share price reaction, Nomura said it did not expect this to become a major issue.
“We believe that this story relates to a request for information on US spirits sales over the last five years which was made by the SEC in March, and we understand that there have been no further enquiries from the SEC,” said the bank.
It said the SEC often makes requests for information like this, which do not lead to any further action.
At 11:14, shares were down 1.3% at 1,881.50p.