It has been reported that the global drinks force, Allied Domecq, has held talks with the Australian wine group, Peter Lehmann (PLW), regarding the formation of a distribution alliance.

According to the report in the Australian Financial Review, PLW is resisting Allied's overtures.

The report said that PLW's fifth largest shareholder, Samuel Smith & Son Pty Ltd, which currently distributes the company's wines in Australia, has reiterated its determination to resist any possible takeover bid by Allied.

The UK-based group recently increased its participation in PLW from 3.9% to 14.5%.