Herbertsons deal on the rocks over valuation

After agreeing to an out-of-court settlement of their dispute over Herbertsons and its subsidiary, BDA Distilleries, Vijay Mallya and Kishore Chhabria seem to be cooling off again. 
 
Sources in the Chhabria camp told Business Standard that the talks between the two parties have fallen through. 
 
"The deal has been off for a while now," sources close to Chhabria said. It is learnt that the two parties have not been able to agree on a price at which Mallya will acquire Chhabria's stake in Herbertsons. 
 
The Chhabria camp said the delay is designed to make BDA bleed and drive down the valuation of Herbertsons. 
 
It is worth noting that Chhabria has raised his stake in Herbertsons to over 50 per cent after the conclusion of his open offer for a 20 per cent stake in the company. "Chhabria is on a much stronger wicket than before," the sources added. 
 
As per a settlement reached between the two, Mallya was supposed to buy out Chhabria from Herbertsons. Chhabria was also to get control of BDA Distilleries. 
 
When contacted, Mallya refused to comment

on the issue. However, a UB Group spokesperson said talks were still going on for an out-of-court settlement between the lawyers of the two parties. 
 
The current round of legal battles between Mallya and Chhabria started last year when Sebi asked both of them to reduce their stakes in the company by offering the shares to the public. 
 
However, Chhabria appealed to the Securities Apellate Tribunal against this order, which asked him to make an open offer and pay an interest of 15 per cent to all Herbertsons shareholders who have held the stock since 1995. Mallya filed an appeal against the order. The matter is slated for a hearing on July 23. 
 
BDA Distilleries was originally a part of Shaw Wallace & Company, with the hugely popular Officer's Choice brand in its portfolio. In an unpleasant turn of events, Chhabria walked away with BDA Distilleries to join forces with Mallya. 
 
While he claimed this was a part of a family settlement, the Late Manu Chhabria, Kishore Chhabria's elder brother, had said it was illegal. The two brothers had filed several legal cases against each other.