Bangalore, Aug 25 - India's top liquor firm United Spirits Ltd decided to call off its discussions on selling a strategic stake to British spirits major Diageo Plc, a senior company official said late Tuesday.

'We have decided not to hold strategic discussions right now with Diageo for meeting the funds requirement of the company, as we have started raising them,' United Spirits chief financial officer Ravi Nedungadi told IANS here.

Tycoon Vijay Mallya's holding firm raised about $200 million in June by selling its treasury stock (10.3 million shares) that was held in Shaw Wallace in the open market.

United Spirits acquired Shaw Wallace for Rs.13 billion (Rs.1,300 crore) in 2005.

'There is no urgent pressure for money. The strategic sale was not limited to equity stake in our company to Diageo, but also in terms of brands and distribution. We want to delink the two as our brands command market leadership,' Nedungadi said.

Clarifying that the decision to put off the talks was not due to global recession or the prevailing sentiment in the international markets on mergers and acquisitions, Nedungadi said despite the downturn, the company had posted 20 percent year-on-year sales in the Indian and overseas markets during the last fiscal (2008-09).