[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 5 April, 2005, 19:26 GMT 20:26 UK
Whisky maker holds takeover talks
Whisky distillery
Allied Domecq has a number of distilleries in Scotland
Allied Domecq, the firm which produces a number of Scotch whisky brands, has entered into takeover talks with France's Pernod Ricard.

Allied is currently the world's second-largest drinks company and makes Ballantines, Teachers, Laphroig, Glendronach, Scapa and Tormore whisky.

Any takeover would raise industry concerns in Scotland over what it would mean for the company's Scottish bases.

Shares in Allied Domecq rose on Tuesday as takeover talks were confirmed.

Speculation has surrounded Allied Domecq - which also makes Courvoisier cognac, Beefeater gin and Malibu coconut rum - since early 2005.

Pernod Ricard, the world's third-largest drinks firm, is said to be working on a bid with US-based Fortune Brands.

'Early stage'

A spokesman for the company told BBC Scotland's news website that talks have been taking place.

He said: "The board confirms that it is in discussions with Pernod Ricard, which is working with Fortune Brands, regarding a potential offer for Allied Domecq by Pernod Ricard.

"These discussions are at an early stage and there can be no certainty that an offer will ultimately be forthcoming.

"A further announcement will be made in due course."

Allied Domecq has a number of distilleries in the north east of Scotland.

Pernod - famous for the aniseed-flavoured drink of the same name, as well as Chivas Regal scotch, Jameson Irish whiskey and Jacob's Creek Australian wine - is keen to expand.

In 2000, it carved up US-based Seagram's drinks business with rival Diageo, with a third going to Pernod and two-thirds to Diageo.

The world's largest drinks company is UK-based Diageo, which has a value of 22.8bn.


SEE ALSO:
Pernod may bid for Allied Domecq
05 Apr 05 |  Business
Pernod takeover talk lifts Domecq
04 Feb 05 |  Business
Laundering suit for spirits firms
08 Nov 04 |  Business
Malibu maker sees profits climb
21 Oct 04 |  Business
Allied Domecq toasts profit rise
22 Apr 04 |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific