Allied Domecq is considering selling Vin & Sprit a minority stake in itself as part of its attempt to buy Seagram's drinks arm. But other drinks companies, including the Bacardi rum group and Brown-Forman, are also looking for a tie-up with the Swedish spirits group.
Vin & Sprit manufactures Absolut vodka, for which the distribution rights are held by Seagram. But Vin & Sprit has written to several potential bidders for Seagram explaining the Absolut distribution rights will not be part of the main deal.
A tie-up with Vin & Sprit for any successful bidder would almost certainly mean they are granted the distribution rights to Absolut. Benchmark in Sunday Business warns that Allied could overpay for Seagram in its attempt to close the gap on rival Diageo.
Sunday Business 27/08/00 page 1, page 3 (Benchmark)
Vin & Sprit manufactures Absolut vodka, for which the distribution rights are held by Seagram. But Vin & Sprit has written to several potential bidders for Seagram explaining the Absolut distribution rights will not be part of the main deal.
A tie-up with Vin & Sprit for any successful bidder would almost certainly mean they are granted the distribution rights to Absolut. Benchmark in Sunday Business warns that Allied could overpay for Seagram in its attempt to close the gap on rival Diageo.
Sunday Business 27/08/00 page 1, page 3 (Benchmark)