Constellation sets deadline for Domecq offer

BRITAIN’S Takeover Panel yesterday set a June 29 deadline for a consortium headed by Constellation Brands to make a rival offer for spirits group Allied Domecq which has already agreed to be taken over by France’s Pernod Ricard.

The panel issued the “put up or shut up” ruling to the Constellation camp as Allied issued the offer document for its takeover by Irish Distiller’s owner Pernod on Wednesday and its scheme of arrangement, aimed at speeding up the Allied-Pernod deal.

The panel said Constellation must decide whether to issue a firm intention to bid by 5pm on June 29 or to say it will not proceed and not make an approach for six months.

“We have enough time to put together a viable bid,” said one source close to the Constellation consortium, while sources at Allied said it was co-operating with the Constellation camp to give them the details to help them put together an offer.

Allied confirmed it will hold a shareholders’ meeting on July 4 to approve its agreed £7.5 billion (€10.9bn) takeover by Pernod unless a counterbid emerges.

Pernod meanwhile said in a complementary document that its Allied takeover should be completed on July 26, if it gets all the necessary approvals and is not derailed by a counter bid.

Last month, Allied agreed to be bought by the Chivas Regal whisky and Martell cognac group Pernod and its US partner Fortune Brands, which makes Jim Beam bourbon, for 545 pence a share in cash and 0.0158 new Pernod shares for each Allied share.

The two groups would split up Allied’s brands with Pernod taking the majority including Ballantine’s whisky, Beefeater gin and Kahlua liqueur, while Fortune would get Sauza tequila and Maker’s Mark bourbon.

This focused interest in Allied as the last big buying opportunity in a industry where many players are controlled by family interests. The world’s biggest wine group, Constellation Brands, is leading a consortium which has made a bid proposal but has not yet made a formal offer for Allied.