US winemaker eyes Allied Domecq

Allied Domecq may be famous for Malibu but Constellation is thought to want its wines

Allied Domecq said on Wednesday it had received a "preliminary" approach from Constellation Brands, the US winemaker.

The UK drinks company, maker of Malibu, last week accepted a £7.4bn ($14bn) takeover bid from Pernod Ricard of France and Fortune Brands of the US.

But the world's largest winemaker, Constellation Brands, said earlier this week it was considering a rival bid.

It has formed a bid consortium with Brown Forman and private equity firms Lion Capital and Blackstone.

Brown Forman makes Southern Comfort and Jack Daniels whiskey.

CONSTELLATION DRINKS BRANDS Wine - Banrock Station, Hardy's, Stowells, Turner Road, Echo Falls, White Cloud, Shamwari, Paul Masson Cider - Addlestones, Blackthorn, Diamond White, K, Olde English, Red C, Natch, Special VAT Fortified wines - VP, QC, Tudor Road, Stone's Ginger Wine Wine-style - Babycham, Rougement, Arbor Mist, Country Manor Strathmore mineral water Check Allied's share price

Lion Capital was formerly the European arm of Hicks Muse, one of the most active buy-out firms.

Wine promise

Allied would have to pay a penalty of £37m to Pernod Ricard if it accepted a rival takeover bid within half a year, reports say.

The UK-listed company described the approach from Constellation as "preliminary".

Constellation is thought to be interested in Allied's wines business, which includes Mumm and Perrier-Jouet champagne.

Other Allied brands include Beefeater Gin and Courvoisier cognac.

The announcement came after the close of the UK market.