Wednesday, August 18, 2010

Diageo's Liquid Assets Plug Pension Deficit

Diageo (DEO) fills a pension deficit by transferring 2.5 million barrels of aging whisky into its pension fund.

The whisky serves as collateral.

This Wall Street Journal article gives some more background on it.

Apparently, it is enough booze to fill 180 Olympic-size swimming pools or roughly  30% of Diageo's whisky stock.

For the companies with extremely large pension obligations this may yet become an even bigger headache (hangover?) not too far down the road.

Adam

Long DEO

This site does not provide investing recommendations as that comes down to individual circumstances. Instead, it is for generalized informational, educational, and entertainment purposes. Visitors should always do their own research and consult, as needed, with a financial adviser that's familiar with the individual circumstances before making any investment decisions. Bottom line: The opinions found here should never be considered specific individualized investment advice and never a recommendation to buy or sell anything.
 
Site Meter