UK: Allied and Diageo bids alone in Seagram race - paper
The report said that expected bids from Bacardi and Brown-Forman failed to materialise before the closing date for the first round of offers on Friday.
At one point both companies were also linked to a joint bid with Allied. But Philip Bowman, Allied's CEO is thought to be confident he can fund an offer, perhaps without even going to the market with a rights issue.
The paper said that the joint Diageo/Pernod Ricard bid has a complex structure which reflects the greater financial muscle of the British company as well as the anti-trust problems it would have in buying Seagram's drinks.
Diageo, it is thought, will own 60% of the Seagram business but most of the major brands will go to Pernod.
Allied, meanwhile, was reported to have received a boost by Vin & Sprit (V&S), the Swedish makers of Absolut vodka. V&S are apparently supporting its bid for Seagram, who currently have the international distribution rights to Absolut.
The Independent went on to say that Allied may even acquire the rights to Absolut should it lose the fight for Seagram's drinks.
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. ...
Pernod Ricard is looking to acquire Allied Domecq....
Allied Domecq and Pernod Ricard have both been downgraded....
Diageo has completed another share buyback transaction....
Fortune Brands has started making moves to acquire in the European drinks industry, according to press reports....
E&J Gallo has announced a number of appointments within its European division....
Diageo's Smirnoff Signatures line of premixed cocktails is now available nationwide in the US....
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