One press release too many

17 June 2005 By Simon Nixon

The US drinks group believed it was being used as a stalking horse after Allied decided to release details of its latest proposal. Nonetheless, its 720p a share offer, comprising a mix of cash and shares in Allied s relisted wine business, was still highly conditional.

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Constellation Brands has dropped its bid for Allied Domecq. The US drinks group was leading a consortium that included BrownForman and the private equity groups Blackstone Group and Lion Capital. Its withdrawal paves the way for Pernod Ricard to buy Allied in a E11.4bn deal.

Constellation had originally submitted an indicative proposal worth about 700p a share in cash. Earlier this week, it submitted a new proposal including a mixture of cash and shares in Allied's relisted wine business, which it said valued the UK drinks group at 720p a share.

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