PARIS: French spirits group Pernod Ricard launched an agreed £7.4bil bid for British rival Allied Domecq yesterday in a deal that closes the gap with industry leader Diageo.
Pernod said the offer valued each Allied share at 670p. Pernod said it was offering 545p in cash and 0.0158 of a new Pernod share for every share of Allied, the maker of brands such as Ballantine's whisky and Beefeater gin.
About 80% of the offer would be in cash, Pernod said.
Pernod said it planned to sell some Allied assets, including Sauza tequila and Canadian Club, to Fortune Brands of the United States for about £2.8bil cash. But the company said it would retain the majority of Allied's businesses, including Ballantine's and Tia Maria.
To finance the deal, Pernod said it would borrow about nine billion euros from a group of banks. Its offer involved the expected issue of a total of about 17.5 million new Pernod shares, it said. – Reuters
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