Constellation Weighs Allied Bid
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Constellation Brands Inc., the world’s largest winemaker, has hired two investment banks to help it decide whether to bid for spirits maker Allied Domecq against Pernod Ricard.
Merrill Lynch & Co. and N.M. Rothschild & Sons are acting as advisors, Fairport, N.Y.-based Constellation said Monday. The evaluation of options with unnamed potential partners “is at an early stage,” the company said.
Constellation Chief Executive Richard Sands wants to add more spirits, which brought in 7.7% of sales last year, as consumption of vodka, rum and whiskey rises in the U.S.
Paris-based Pernod agreed Thursday to buy British firm Allied Domecq for $14.1 billion to become the world’s No. 2 alcohol company behind Diageo.
A spokeswoman for Pernod declined to comment and a spokesman for Allied Domecq wasn’t available.
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