Diageo has had its rating upped following yesterday's announcement that it is set to acquire Bushmills from Pernod. The UK-based company also has first refusal on Allied Domecq's Montana wine business. Both purchases are dependent on Pernod's bid for Allied succeeding. Diageo has in return promised not to discuss a competing bid for Allied with any third party.

WestLB upgraded the drinks giant late yesterday (6 June) to 'neutral' from 'underperform.' The deal increases exposure to the global wine market and ultimately improves the chance of Pernod's offer for Allied being successful, WestLB said.