At press time, the $2.26 billion sale of Miami-based Burger King to a consortium of U.S. capital firms had hit a major bump in the road. London-based BK parent Diageo had announced that the fast food chain’s poor performance in recent months had led to the consortium — which consists of Texas Pacific (which includes BK chairman John Dasburg), Bain Capital, and Goldman Sachs Capital Partners — asking to revise terms of the agreement. The sale’s original conditions for completion stipulated that Burger King had to reach certain performance targets.

While many analysts expect Diageo to agree to new terms just to get this sale over with, the transaction could fall apart completely if the consortium tries to drive the price down too far. Both parties had agreed to $2.1 billion as the minimum price this summer but Diageo broker Casenove said the new sale price could drop as much as 17 percent to $1.8 billion. The transaction was originally expected to close in the fourth quarter of 2002.

The failure of the sale would be especially frustrating for Diageo, which earlier this year pulled its Captain Morgan Gold “malternative” out of the U.S. market after an unsuccessful launch and had to keep a stake in Pillsbury, which it sold to General Mills.

The fast food giants are not ending the year on a high note. McDonald’s and Wendy’s both slashed their fourth quarter earnings forecasts, with McDonald’s closing 175 restaurants.

Mercedes-Benz USA, Montvale, NJ, and The Ritz-Carlton Hotel Co., Montgomery County, MD, struck a three-year marketing agreement to offer a Key to Luxury package to hotel guests. Starting last month, eight Ritz-Carlton locations are offering the package, which includes a deluxe room and a rental of a 2003 Mercedes-Benz with unlimited mileage, gas refills, and overnight valet parking. Other Ritz-Carlton properties (such as the Bachelor Gulch ski resort) will be using Mercedes-Benz as their in-house transportation. Additional hotels will be added in 2003.

Electronics manufacturer Samsung, New York City, renewed its sponsorship with the International Olympic Committee through the 2006 Winter Olympics and the 2008 Summer Olympics. Seven other brands have renewed their global sponsorships with the IOC, including Coca-Cola, Kodak, John Hancock, Swatch, and Panasonic. The global partners each provide at least $50 million in cash, services, and products over their four-year stint.

Two Motor City natives are teaming up. General Motor’s Chevrolet division announced a multi-year sponsorship of the NBA’s Detroit Pistons. Chevrolet becomes the Official Vehicle of the Pistons, receiving in-arena signage at The Palace, logo placement on the Piston’s press conference banner, vehicle displays outside the arena, ads in Piston publications such as The Media Guide and Hoop Magazine, and official vehicle of the Detroit Pistons Youth Training Clinics. Chevy is hosting leather jacket giveaways at each Piston home games for fans who register at the Chevy kiosk in the concourse.

The $2.26 billion sale of Miami-based Burger King to a consortium of U.S. capital firms has hit a major bump in the road. BK’s parent, London-based Diageo, announced that the fast food chain’s poor performance in recent months had led to the consortium-which consists of Texas Pacific (including BK chairman John Dasburg), Bain Capital, and Goldman Sachs Capital Partners-asking to revise terms of the agreement. The sale’s original conditions for completion stipulated that Burger King had to reach certain performance targets.

While many analysts expect Diageo to agree to new terms just to complete the long-delayed sale, the transaction could fall apart completely if the consortium tries to drive the price down too far. Both parties had agreed to $2.1 billion as the minimum price this summer, but Diageo broker Casenove said the new sale price could drop as much as 17 percent to $1.8 billion. The Burger King sale was originally expected to close in the fourth quarter of 2002.

The failure of the sale would be especially frustrating for Diageo, which earlier this year pulled its Captain Morgan Gold “malternative” out of the U.S. market after an unsuccessful launch and had to keep a stake in Pillsbury, which it sold to General Mills.

The fast food giants are not ending the year on a high note: McDonald’s and Wendy’s both reduced their fourth-quarter earnings forecasts.