Takeover Panel asks Constellation to 'put up or shut up' |
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Thu, 26 May 2005 19:25
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Britain's Takeover Panel has issued a "put up or shut up" notice to a US consortium headed by Constellation Brands, which aims to outbid Pernod Ricard, the French drinks group, which has staked a claim to purchase Allied Domecq, the second-biggest spirits company in the world.
The Takeover Panel has set a June 29 deadline for the US companies to table their offer. Meanwhile, Pernod Ricard sent its offer document to Allied shareholders yesterday. Allied chairman Gerry Robinson wrote to shareholders and informed them that the indicative proposal by Constellation is yet to translate into a firm offer, "The indicative proposal is highly conditional and is subject to considerable further due diligence by the consortium, confirmation of financing and a number of other significant conditions," he said in the letter. He added that the takeover drama could have a "short-term impact on the performance of the business".
| There was also a moment of embarrassment for Pernod Ricard as it was revealed that Richard Burrows, its director general, had purchased some allied shares in September last. Mr. Burrows had purchased 7,350 Allied shares priced at 455p for £33,442. The current value of these shares is £51,009. A Pernod spokesman clarified by saying, "Last September there were no discussions with Allied. The share purchase was one of a number of investments made in various companies including other consumer goods companies."
There will be a meeting of Allied shareholders in London on July 4 to vote on the Pernod takeover. The deal is expected to be completed on July 26.
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