Pernod considers offer for Allied Domecq

7th April 2005, Comments 0 comments

LONDON, April 7 (AFP) - French drinks and spirits group Pernod Ricard would consider an offer of GBP 0.670 (EUR 0.926) per share for British rival Allied Domecq, according to The Times newspaper on Thursday.

LONDON, April 7 (AFP) - French drinks and spirits group Pernod Ricard would consider an offer of GBP 0.670 (EUR 0.926) per share for British rival Allied Domecq, according to The Times newspaper on Thursday.

Allied Domecq, makers of Beefeater gin, Perrier Jouet champagne and Malibu rum, faced a potential takeover by smaller French rival Pernod in a joint deal with US peer Fortune Brands.

Sources close to talks told The Times that parties were "leaning towards the lower end of the offer price range of GBP 0.670 to 700 (EUR 0.926 - 1.01) a share".

That would value Allied Domecq, the world's second largest drinks company, at around GBP 7.41 billion (EUR 10.78 billion, USD 13.92 billion).

Pernod, the world's third largest player in the sector, planned to make the initial bid alone, acquiring 100 percent of Allied Domecq shares, The Times said.

Following the takeover Pernod, maker of Glenlivet whiskey and Havana Club rum, would then sell around GBP 2 billion (EUR 2.9 billion) of Allied assets to Fortune Brands, which produces Jim Beam bourbon.

The French group planned also to auction off Allied's Dunkin' Donuts US chain and the Baskin-Robbins ice cream brand, the paper added.

Separately, Pernod was mulling the sale of Allied's wine business, should the takeover proceed, The Independent reported.

Analysts told the newspaper that Allied's wine portfolio could fetch up to GBP 2 billion (EUR 2.9 billion), as Pernod looked for assets to help finance the deal.

Investors greeted the news with mixed reaction, as Allied's share price rose 0.47 percent to GBP 0.636 pence in London. However, Pernod lost 1.54 percent to EUR 115.2 euros in Paris.

© AFP

Subject: French News

0 Comments To This Article