News

US: Constellation chief lays into Vincor rejection

Most popular

Everywhere is now a drinking occasion - Trends

How DNA testing will shape the future of drinking

Pernod Ricard Performance Trends 2015-2019

Canada blazes a trail for cannabis beverages

Major spirits brands dodge the US tariff bullet

MORE

Constellation has no intention of upping its bid for Vincor, the wine giant said yesterday (19 October). The comments follow Vincor's rejection of a bid from Constellation worth C$31 (US$26.45) per share earlier this week.

"There's no reason to sweeten the bid," Constellation chief executive and chairman Richard Sands said yesterday. "Our bid is very sweet. If circumstances change, and there was a competing bid, we would evaluate any information that was available and make a decision at that time."

Sands also said that he has not heard of any other parties interested in buying the Canadian-based company, and added he was confident $31 a share is full and fair value. "If before the expiration of our offer, no one shows up with an alternative and Vincor can't bring certainty to some set of prospect, then the shareholder will be facing, 'do we take $31 in cash, or do we let the stock drop to the low $20s?'" he said.

"This run-up that you've seen is based on total speculation, speculation encouraged by Vincor. Basically they're throwing a party and they're concerned no one's coming."

In a conference call with analysts, Sands also warned the directors of Vincor that they are "playing a dangerous game."

"The company (Vincor) has inherent structural problems, including its lack of critical scale in key markets and a lack of marquee brands," such as those of recent Constellation's buyout targets Robert Mondavi and BRL Hardy, Sands said. "In the right hands, Vincor is a company with promise, but it is just not in the same league as these companies."

Sands added that the Vincor board was risking demoralising employees, deteriorating relationships with distributors and generally corroding Vincor's operations by "suggesting that there is a real auction."


Sectors: Wine

Companies: Constellation Brands

Related Content

Constellation Brands Performance Trends 2014-2018 - results data

Constellation Brands Performance Trends 2014-2018 - results data...

Constellation Brands' Q3 & YTD 2018 results - Preview

Constellation Brands' Q3 & YTD 2018 results - Preview...

Constellation Brands to roll out carb-light Corona Premier across US

Constellation Brands to roll out carb-light Corona Premier across US...

Constellation Brands upbeat on future, despite perceived danger of Donald Trump - Analysis

Constellation Brands upbeat on future, despite perceived danger of Donald Trump - Analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?