Ex-Diageo Boss Walsh In Frame For F1 Chair

Paul Walsh, the former chief executive of drinks giant Diageo (LSE: DGE.L - news) , has been approached about becoming the next chairman of Formula One (F1) motor racing.

Sky News has learnt that Mr Walsh has been holding discussions about taking the role, with a board meeting of F1's owner understood to be scheduled for early next week.

Mr Walsh, who left Diageo, the owner of Guinness and Johnnie Walker, earlier this year, is understood to be one of a small number of names on a list of candidates to replace Peter Brabeck-Letmathe, the current chairman.

Mr Brabeck-Letmathe, who chairs Nestle (VTX: NESN.VX - news) , is said to be planning to step down from the role.

News of the prospective change comes just weeks after the British Mercedes driver Lewis Hamilton won the Abu Dhabi Grand Prix to clinch his second World Championship.

The plans have yet to be finalised and it remains possible that someone other than Mr Walsh could take the role or that an appointment could be delayed.

Earlier this year, shareholders in Delta Topco, F1's immediate parent, shared a $1bn (£585m) payout through a refinancing that paved the way for a future change of control of the sport.

The payout was the biggest to F1's shareholders for two years, and augmented their already handsome returns on their investment in the world's most glamorous motorsport.

It also underlined the ability of F1 to continue throwing off cash even after a year when the sport's future leadership had been hit by uncertainty.

Bernie Ecclestone, F1's long-standing chief executive, was cleared after standing trial on bribery and corruption charges in Germany.

CVC Capital Partners, F1's biggest shareholder with a stake of just over 35%, bought into the sport in 2005, but it has been reduced its stake significantly during the last three years.

The group sold shares privately to investors including Blackrock (NYSE: BLK - news) , Norway's sovereign wealth fund and Waddell & Reed, a US fund manager, all of whom bought in at a valuation of around $9.2bn (£5.4bn).

A flotation remains a medium-term possibility, although the media groups Liberty Global (NasdaqGS: LBTYA - news) and Discovery Communications (NasdaqGS: DISCA - news) have also been holding talks about acquiring a 49% stake in the sport.

A CVC (Taiwan OTC: 4744.TWO - news) spokesman declined to comment.