Allied Domecq said yesterday it had received an indicative proposal from a consortium led by Constellation Brands, which is understood to value the British company at about £7.7 billion (€11.2 billion) or 695p-705p per share.
If the consortium follows the proposal with a formal bid, it would usurp Pernod Ricard's offer for Allied, which was initially valued at £7.4 billion or 670p per share.
The consortium is also understood to be proposing all cash, which would be more attractive to Allied shareholders than Pernod's offer, which consists of 80 per cent cash and 20 per cent stock. Pernod declined to comment on whether it was prepared to raise its offer for Allied if the consortium - which includes US distiller Brown-Forman and investment firms Lion Capital and the Blackstone Group - proceeded with a formal bid.
The consortium said there was no certainty a bid would come.
Meanwhile, Allied is moving ahead in its deal with Pernod. The French company is expected to release offer documents and the dates on which shareholders will vote on the Allied acquisition in the next 10 days.
Diageo, the world's biggest distiller, is not participating in the consortium. However, it is understood to be interested in buying some of Allied's brands if the consortium makes a successful bid for the UK spirits group.
Allied agreed to be acquired by Pernod last month as the French company seeks to build its business to compete more effectively in the international spirits market. - (Financial Times Service)
