A Scotch with your Pernod?

FRENCH drinks group Pernod Ricard is considering a bid for Scotch whisky distiller Glenmorangie, which put itself up for sale last month.

The group, which owns the Chivas Regal, Clan Campbell and The Glenlivet whisky brands, has instructed its corporate adviser, JP Morgan, to evaluate the Glenmorangie business. The brand is Britain's top-selling single malt.

JP Morgan has worked with Pernod Ricard before on major acquisitions, most notably advising it on its joint purchase with Diageo of the Seagram drinks empire in March 2001.

Glenmorangie came up for sale when the Macdonald family, which owns 52%, appointed Rothschild to seek a buyer for its stake.

The company employs 355 people, including 64 staff at its three distilleries, and sells two million cases of whisky a year to 120 countries.

Pernod, which also owns Jacob's Creek wine, Seagram's Gin and Martell cognac, looks likely to face stiff opposition for the prestigious brands, which include single malts Ardbeg and Glen Moray as well as blended whisky.

Several drinks companies are understood to have expressed an interest in the company, which means that the asking price could be pushed up to about £300 million.

The front runners include Brown-Forman, the US company behind Jack Daniel's, which already owns ten% of Glenmorangie and has a director on the board, and Bacardi-Martini, the group's UK and European distiller. Scottish distiller William Grant & Sons is also in the frame. UK drinks giants Diageo and Allied Domecq might be interested, but could face competition issues.

A Pernod Ricard source said: 'As a large drinks company with several whisky brands, it would be very surprising if Pernod did not run a slide rule over the company.'

Glenmorangie shares have risen 12% since news of the sale broke. They closed at £15 on Friday.