KOREA: AD considering Jinro purchase
Allied Domecq (AD) has confirmed that is in interested in making a bid for South Korea's troubled distiller, Jinro Ltd. The Korean unit of the spirits company said today (26 October) that it is considering making a move for the distiller, which controls 55% of the Korean soju market.
"Our chief executive expressed interest in Jinro," said Yoo Ho-sung, a spokesman for Jinro Ballantines, a unit of AD. "But we have no specific plan for Jinro at the moment."
Jinro, which is thought to be worth between KRW1.5 trillion and KRW2.5 trillion (US$1.32 bln and US$2.21 bln), ran into trouble in the 1990s when it expanded into unrelated businesses such as retail and construction and racked up $1.4 bln in debts. US investment firm Goldman Sachs, which holds a third of Jinro's debt, placed the liquor distiller in court receivership in 2003 on charges of mismanagement.
Speaking to Reuters, a Jinro official in charge of selling the bankrupt company said that its lead manager Merrill Lynch has been conducting due diligence on the company, before putting it up for sale. "The due diligence will be completed in December and we will start receiving bids from next year," he told the news agency.
"If you look around Asia, there is little opportunity, and one of the biggest opportunities is Jinro in Korea and Japan," David Lucas, the head of Jinro Ballantines, was quoted as saying by the Korea Herald newspaper.
"I'm trying hard to persuade the group executive that they should take the opportunity much more seriously," he was also quoted telling reporters on a trip to Spain.
In 1999, AD took a 70% stake in Jinro's whisky operations and set up a venture, Jinro Ballantines Co. in 2000.
Conflicting reports circulated this weekend over whether Bacardi International is looking to form a counter-bid for Allied Domecq....
Todays press reports into Pernod and Fortune's hopes to buy Allied Domecq warn of possible conflicts and set a date for completion....
Allied Domecq has added a new flavour to its Malibu range. The company said yesterday that it would be launching Malibu Passion Fruit in the US from April 15....
Pernod Ricard and Fortune Brands are hoping to buy Allied Domecq for around 670p per share, according to press reports....
LVMH has said it is not looking to buy Mumm Champagne from Allied Domecq....
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
Diageo is to launch a new global advertising campaign for Smirnoff Ice. The first ad in the global campaign, 'Garden', launches in Great Britain on April 11th on terrestrial and satellite TV. ...
Fideuram Wargny has upgraded its rating of Pernod Ricard to 'buy' from 'hold'. Its analysts argue that the merger talks with Allied Domecq is a catalyst for share growth....
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