UK: Weekend press fallout - Allied & Pernod
A host of drinks companies spent the weekend mulling over whether to launch counter-bids for Allied Domecq, according to press reports over the last few days. Bacardi and Constellation appear to be leading the charge.
Both the Business and the Sunday Times said yesterday that Bacardi is considering bidding. The family-owned company's chairman, Ruben Rodriguez, has previously held talks with Allied chief Philip Bowman regarding a merger, the Business said. Some of the 100 family shareholders who control Bacardi want to see if anything can be done to resurrect a deal and outbid Pernod, the Business added.
One insider close to Bacardi told the Business that it could still make a bid. Being domiciled in Bermuda, it benefits from a low tax rate, which could give it an edge on Pernod. The Sunday Times pointed out, however, that Bacardi might struggle to play a part in any deal, given its shareholding structure.
Several papers, including the Sunday Times and the Independent, said that Constellation is racing to find partners to launch a counter-bid. Citing industry sources, the Sunday Times said that Constellation wants to seek talks with drinks companies such as Bacardi, Brown-Forman and Diageo about making a bid.
Today's Independent said that the US group has appointed NM Rothschild and Merrill Lynch to advise it on a possible bid for Allied. Their work has become more intense since details of the Pernod offer were published on Thursday, the paper claimed.
Allied has not signed an exclusive agreement with Pernod. One observer told the Sunday Times: "It is hard to imagine that as the last pretty girl on the dance floor, Allied is not going to have a number of people trying to dance with her."
Constellation Brands has reported record net sales and net income for its full year, despite a tough fourth quarter, in which it was hit by acquisition costs....
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....
Anheuser-Busch has revealed plans to launch a new variant in its Bacardi Silver range....
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....
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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