Drinks giant Pernod Ricard should be ready to serve up a £7.4bn (€10.8bn) takeover deal for rival Allied Domecq later this week, reports indicated today.

Drinks giant Allied Domecq was today reported to be a takeover target of the French owner of Jameson whiskey, Chivas Regal whiskey and Jacob’s Creek wines.

Allied Domecq, the operator of Dunkin’ Donuts, Baskin-Robbins ice-cream and Togo sandwich stores, has renamed its fast-food unit after its doughnut chain.

Drinks giant Allied Domecq was today toasting the success of spirits such as Ballantine’s whisky and Malibu rum as it issued an upbeat trading statement.