CANADA: Vincor - Constellation's offers "dead"

By | 7 December 2005

Vincor has today (7 December) dismissed both of Constellation's latest takeover offers as being "dead". The Canadian wine company made the comments almost 24 hours before the deadline for the bids.

Speaking to just-drinks, a spokesperson for the company said: "Both offers of C$33 and C$35 (per share) are dead."

Constellation has offered Vincor shareholders C$33 per share, while suggesting to the Canadian company's board that it would up its bid to C$35 per share, if it supported the offer and provided cooperation throughout the completion of the acquisition.

"We haven't spoken with Constellation about their bid for about a week," the spokesperson added.

"We were open to talk to them, so long as they gave a firm and fair offer north of C$35 (per share), and Constellation said no." When asked how far north, the spokesperson said: "Not a million miles away (from C$35)." The spokesperson would not be drawn, however, on a specific figure.

Commenting on speculation that other companies may be looking to make a counter-bid, the spokesperson added: "There are a lot of people watching to see what's going to happen." Again no comment was given about who was monitoring the situation.

Constellation's offer is set to expire at midnight, US Eastern time, tomorrow.

Sectors: Wine

Companies: Constellation

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