Allied Domecq Accepts $14.2 billion Bid From Pernod and Fortune

    April 21, 2005

Allied Domecq has accepted a $14.2 billion takeover offer from Pernod Ricard and Fortune Brands.

Allied Domecq is the maker of Malibu Rum and Beefeater Gin and Sauza Tequila.

“In the last five years, Allied Domecq has been transformed into a dynamic business which owns a diverse portfolio of leading consumer brands,” Bowman said. “The market capitalization has almost doubled, increasing by $6.89 billion. The recommended offer put before the business by Pernod Ricard provides Allied Domecq shareholders with the ability to crystallize some of that value.”

According to a Reuters article,

“The timing and details of the bid were revealed by Reuters on Wednesday, following the confirmation by Allied that it had received an approach from Pernod-Fortune 16 days ago.

Shares in both Pernod and Allied rose sharply, with Pernod shooting up 6.8 percent to 124.8 euros by 0945 GMT after earlier hitting a new high of 125.3 euros, while Allied shares climbed 3.1 percent to 663-1/2 pence.”

“The deal looks good for Pernod. It bring them closer to Diageo and overcomes their weakness in the U.S.,” says analyst David Liston at Barclays Private Clients.

Pernod will keep most of Allied’s labels such as Malibu, Tia Maria, Ballantine’s, Beefeater, and Kahlua.

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