CANADA: Vincor awaits other suitors
Vincor International is prepared to consider other bids in light of a hostile approach from Constellation Brands. The Canadian-based wine company said yesterday (18 September) that it is aware of other potential offers.
"We believe that it is management's responsibility to canvass the market," Vincor's chief executive, Donald Triggs said. "We know there are at least four other bidders with $80m or more of synergies a year and we believe it's our responsibility to find out."
Triggs dismissed Constellation's US$940m hostile bid, also announced yesterday, as "opportunistic" and "inadequate." Vincor has since identified some C$16m in annual cost savings, Triggs added, and expects to recognise C$5m of these this year.
"Constellation's approach does not fully value these savings, the momentum of our premium brands, and Vincor's projected organic growth," he said.
Constellation's chief executive, Richard Sands, said in a conference call yesterday: "We are committed to completing this transaction with Vincor quickly, and I emphasise quickly. We will make all our resources available to achieve that goal.
"It's really a two part proposal," Sands added. "We will pay C$31 a share for a negotiated transaction without any additional information. Alternatively, we would prefer that Vincor share information with us so that we can pay additional value as that information warrants."
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