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Allied Domecq gets Constellation proposal

Drinks group Allied Domecq Plc has received a proposal from U.S. firm Constellation Brands, but said it would still progress with its agreed $14 billion buyout from France’s Pernod Ricard.
/ Source: Reuters

Drinks group Allied Domecq Plc has received a proposal from U.S. firm Constellation Brands, but said it would still progress with its agreed $14 billion buyout from France’s Pernod Ricard.

Constellation, the world’s biggest wine company, is leading a consortium that also includes spirits maker Brown-Forman and financial firms Lion Capital and Blackstone Group over a possible counterbid for Allied.

“Allied Domecq announces that it has now received an indicative proposal from the consortium regarding a potential offer,” Allied said in a statement on Friday.

“The indicative proposal is highly conditional, being subject to considerable further due diligence, confirmation of financing and a number of other significant conditions,” it added.