Glenmorangie goes up for sale

BRITAIN'S favourite malt whisky, Glenmorangie, is set to be the subject of a furious takeover battle after the last major independent quoted Scotch producer was put up for sale by its family shareholders.

Its shares soared nearly 20%, up 192 1/2p to an all-time high 1250p - valuing the company at £225m - as the majority-owning, cofounding Macdonald family said they wanted to sell their holding of more than 50%.

An auction for the whole company being conducted by NM Rothschild could land the Macdonalds a £150m windfall.

One source close to the sale process said: 'This sort of brand comes up for sale very rarely. And it is a hell of a brand. The big boys - and you should not rule anyone out - will be prepared to pay up for it. A £300m price tag is not absurd. Will it go higher? Yes it might.'

Favourite is Brown-Forman, owner of the Jack Daniel's bourbon brand and a 10% holder in Glenmorangie. It will be rivalled by Bacardi which distributes Glenmorangie in Europe.

Bell's and Johnnie Walker group Diageo could test regulators by launching a bid. Privately held William Grant & Sons, owner of Glenmorangie's main rival, Glenfiddich, might also offer.

Allied Domecq, owner of Laphroaig, and privately held Edrington, maker of Famous Grouse, could also join the battle, while French giants Pernod-Ricard and LVMH will also show an interest.

Glenmorangie is Britain's best-selling malt with 17.6% of the market.