UK: Press round up - AD, Pernod & Fortune Day 11
Constellation Brands is interested in some of Allied Domecq's spirits brands, according to reports today (15 April). The Wall Street Journal Europe, citing people familiar with the situation, says that the US-based company is not large enough to buy all of Allied, so is looking for other firms to join it.
While other large spirits companies are interested in acquiring some of Allied's brands, the paper says, like Constellation they either are too small to buy the company outright or face issues with monopoly authorities.
Constellation, which bought Californian wine company Robert Mondavi last year to make it the world's largest wine company by sales, has a market capitalisation of US$6.5bn, the paper notes. Allied has a present market value of around US13.4bn.
Constellation could struggle to find partners for an offer, the paper says. Simply negotiating among so many parties is complicated, while the most likely candidate, Diageo, already has such massive scale that it stands to gain little from participating in a joint bid, people familiar with the matter told the Journal.
One potential candidate suggested by the paper is LVMH Moet Hennessy Louis Vuitton of France, which owns Dom Perignon champagne and Belvedere vodka and beat out a bid by Pernod in an auction for Glenmorangie whisky last year. An LVMH spokeswoman declined to comment to the WSJE.
Reports earlier this week suggested that Bacardi baulked at getting involved in any bids due to its acquisition of Grey Goose vodka company late last year leaving its coffers dry.
Other reports forecast that a Pernod/Fortune Brands bid will be unveiled next week.
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 considering a US$13 billion bid for Allied Domecq, the world's second-largest spirits company. Were it to take place, Pernod and Fortune would split Allied's brand...
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....
Frescobaldi has bought out Constellation from its joint venture, according to press reports....
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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