Speculation is growing that the UK-based wines and spirits group, Allied Domecq, is considering making a bid for the troubled Australian wine group, Southcorp.
A report in the UK newspaper, The Daily Telegraph, quoted an Allied advisor saying that it was “rational speculation” that Allied would make a bid for the Australian company.
The report in the newspaper on Friday said Allied was considering making an informal approach for Southcorp whose shares were suspended on Friday with another profit warning being widely predicted. Southcorp is valued at around A$3.2billion (£1.2 billion).
Neither Allied nor Southcorp would comment on the speculation.
