Allied Domecq counter bid

THE world’s largest wine company, Constellation Brands, said yesterday it was considering a possible counter bid for Allied Domecq , which agreed to be taken over by Pernod Ricard last week.

“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,” Constellation said in a statement after a number of press reports linked it with a bid for Allied.

Last week, Irish Distillers’ parent Pernod and its US-based partner Fortune Brands agreed a €10.8bn largely cash takeover of Allied, which valued Allied’s shares at 670 pence each.

Constellation has hired investment banks Rothschild and Merrill Lynch to consider its possible bid for Allied, while press reports suggest Constellation could partner US group Brown-Forman Corp and privately-owned Bacardi in a bid.

Rothschild is close to Bacardi and Brown-Forman, having advised the pair on a joint bid for Seagram in 2001, which ultimately went to Pernod and its then partner Diageo.