Pernod in US talks to launch Allied bid

DRINKS giant Pernod Ricard has held talks with Fortune Brands, the American group behind Jim Beam bourbon, about helping it to bankroll a bid for British spirits group Allied Domecq.

The French and US companies have spoken about a move that would see them table a joint offer. If successful, it would enable Fortune Brands to take over some Allied brands to avoid any competition issues.

Allied Domecq, worth £5.8bn, has many top brands, including Malibu, Tia Maria and Perrier Jouet champagne.

However, Pernod, a similar size to Allied, is understood to be too small to do a deal on its own. And it would run into problems with overlapping brands such as Pernod's Martell and Allied's Courvoisier cognac labels.

Fortune Brands is a £6.5bn consumer goods combine that has interests in household goods and hardware, spirits and wine and golf and office equipment. Its main drinks brands are Dalmore whisky and Jim Beam and Knob Creek bourbons.

Fortune declined to confirm that it was talking to Pernod about Allied Domecq. 'It is our company policy never to comment on rumour and speculation,' it said.

But it added that one of the company's main priorities was to build up its wine and spirits division.

Last month, it was revealed that Pernod, which is valued at £5.2bn, had appointed financial advisers JP Morgan and Morgan Stanley to explore potential targets that would expand its drinks portfolio. Allied's share price has risen on rumours that it is a likely target.

Pernod declined to comment.

Drinks rival Diageo is understood to be interested in part of Allied's business too. A spokeswoman said: 'We would be interested in Allied's wine portfolio as we think we could expand it.'