A Constellation Brands-led consortium has made an indicative cash offer for Allied Domecq that would be more attractive than Pernod’s agreed mixed cash and shares bid. The approach by the consortium, which also includes Brown-Forman and Lion Capital and the Blackstone Group, is believed to value the wine and spirits firm at about 700p a share. However, there is no certainty they will make a formal bid. Allied is moving ahead on its deal with Pernod. Pernod is expected to release offer documents in the next 10 days. It might have to raise its 670p-a-share offer in the light of the possible counterbid. Diageo is thought to be interested in possibly picking up some of Allied’s brands if Constellation makes a successful bid and there is speculation that it is in talks with Bacardi about the possibility of establishing a third bidding consortium. Lex, in the Financial Times, says Constellation urgently needs to demonstrate it has clear vision. Yesterday’s statements hardly do the trick, the newspaper says. Allied closed up 10p on Friday at 692p and Pernod ended the day 10 cents (7p) higher at Eu119.40 (£81.47), valuing its offer at 673p a share. Diageo rose 8.5p to 808p. Financial Times (Money & Business) 14/05/05 page 2, page 19 (Markets Week – London), page 14 (News section – Lex) The Times 14/05/05 page 54 (Need to know), page 60, page 61 (City Diary) The Daily Telegraph 14/05/05 page 31