MARKET EYE-India's United Spirits falls after Diageo offers to sell unit

* Shares in United Spirits Ltd fell as much as 8.4

percent on profit-taking after Diageo PLC (Other OTC: DGEAF - news) offered to

sell most of its unit Whyte & Mackay's (W&M) whisky assets to

address Britain's competition concerns.

* In July, Diageo took a 25 percent stake in United Spirits, the

owner of Whyte & Mackay.

* United Spirits had gained 8.2 percent in the previous two

sessions in anticipation of the news, compared with a 1.9

percent gain in the BSE index.

* Analysts say the sale of W&M, while reducing the company's

debt, may already be reflected in United Spirits' shares, which

have risen more than five-fold since the start of 2012.

* Shares in United Spirits down 1.06 percent as of 0438 GMT.

(abhishek.vishnoi@thomsonreuters.com /;

abhishek.vishnoi.thomsonreuters.com@reuters.net)