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| Drinks maker Diageo faces US probe | Drinks maker Diageo faces US probe |
| (about 3 hours later) | |
| The US regulator, the Securities and Exchange Commission (SEC), has launched an investigation into whether drinks company Diageo has been shipping excess stocks to customers to boost results. | The US regulator, the Securities and Exchange Commission (SEC), has launched an investigation into whether drinks company Diageo has been shipping excess stocks to customers to boost results. |
| Sending customers more cases than they had ordered would allow Diageo to report higher sales than were placed. | Sending customers more cases than they had ordered would allow Diageo to report higher sales than were placed. |
| Diageo said it was "working to respond fully to the SEC's requests for information in this matter". | Diageo said it was "working to respond fully to the SEC's requests for information in this matter". |
| Shares in Diageo were down 2% in midday trading following the news. | |
| The US market accounts for nearly $18bn of Diageo's annual sales. | The US market accounts for nearly $18bn of Diageo's annual sales. |
| But sales in the region have been falling since 2011. | But sales in the region have been falling since 2011. |
| Diageo - which makes drinks including Smirnoff vodka, Guinness and Johnnie Walker whiskey - saw its share price surge last month on reports of a possible £50bn takeover bid from the Brazilian billionaire Jorge Paulo Lemann and his private equity partners. | Diageo - which makes drinks including Smirnoff vodka, Guinness and Johnnie Walker whiskey - saw its share price surge last month on reports of a possible £50bn takeover bid from the Brazilian billionaire Jorge Paulo Lemann and his private equity partners. |
| In the second half of last year the world's biggest distiller of Scotch whisky reported a sharp fall in sales in some of its key markets. | In the second half of last year the world's biggest distiller of Scotch whisky reported a sharp fall in sales in some of its key markets. |
| Diageo said profits fell by 18% to £1.7bn, while overall sales were down 1%. | Diageo said profits fell by 18% to £1.7bn, while overall sales were down 1%. |
| Trading conditions in parts of Europe and Russia, described as "tough" at the start of the year by the company, are thought to remain difficult. | Trading conditions in parts of Europe and Russia, described as "tough" at the start of the year by the company, are thought to remain difficult. |