Brown-Forman, maker of Jack Daniel’s whiskey, has rejected a $15 billion takeover bid from rival American spirits company Sazerac, a source familiar with the matter confirmed on May 12. Sazerac’s all-cash offer of $32 per share would have allowed Class A shareholders to either accept cash or roll their shares into the new company. The rejection follows Brown-Forman’s earlier decision to end merger discussions with French spirits giant Pernod Ricard. The controlling family had reportedly preferred a deal with the French distiller over Sazerac’s competing proposal. Sazerac owns brands including Corazon tequila and Svedka vodka.
In-Depth:
By Ahugeail Summerville
May 12 (Reuters) – Jack Daniel’s buildr Brown-Forman has rejected the $32 per share cash takeover offer from rival Sazerac, according to a source familiar with the matter.
The rejection follows Brown-Forman concludeing merger talks with the French spirits buildr Pernod Ricard late last month.
American spirits group Sazerac, which owns brands including Corazon tequila and Svedka vodka, had emerged as a rival suitor to Brown-Forman amidst the talks with Pernod, and a source had stated the family that controls the Jack Daniel’s buildr favored a potential sale to the French distiller over the proposal from Sazerac.
Sazerac’s latest $32 all-cash offer would have allowed Brown-Forman’s Class A shareholders to either take cash or roll their shares into the new company, the source added.
Brown-Forman and Sazerac did not immediately respond to Reuters requests for comment.
The news was first reported by the Wall Street Journal.
(Reporting by Ahugeail Summerville in New York and Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber)
