Vintage battle set for Allied Domecq
A bid battle for Allied Domecq was brewing today after the world’s biggest winemaker confirmed it was considering a rival offer.
Constellation Brands, whose products include Hardys wine and Corona beer, said it was at the early stage of weighing up its options over a possible counter-bid to Pernod Ricard’s takeover agreement.
It said it was talking to potential partners over a deal. The move comes just days after Allied Domecq accepted a proposal from Pernod in a tie-up that would create the world’s second-largest wine and spirits firm.
The firm said: “Constellation is at an early stage of evaluating its options with a number of potential partners and there is no certainty that this process will lead to an approach being made to the company.”
Shares rose 1% after the announcement.
Constellation is thought to be seeking partners for a joint bid since it would not be big enough to make a move alone.
Likely candidates for a tie-up are said to include Brown-Forman, whose brands include Southern Comfort and Jack Daniels, and rum-maker Bacardi. A spokesman for Constellation would not comment today on potential partners.
