Sale of Jim Beam to Pernod or Diageo Predicted

Publication: Bloomberg Businessweek

Title: Jim Beam Inviting Biggest Liquor Takeover Since 2005: Real M&A

Article by: Devin Banerjee and Duane D. Stanford

http://www.businessweek.com/news/2011-10-24/jim-beam-inviting-biggest-liquor-takeover-since-2005-real-m-a.html

Bloomberg News reports that Jim Beam could be sold to Pernod-Ricard SA or Diageo Plc.  If this prediction is correct, it would be the biggest spirits acquisition in six years.

The liquor company Beam Inc. formed as a result of the breakup of Fortune Brands Inc. this year.  If Beam Inc. was to be taken over, it would be worth approximately $59 a share.

According to Bloomberg News:

“With bourbon sales outpacing vodka in the U.S. as drinking at home increases, Beam’s command of a third of the domestic market with Jim Beam and Maker’s Mark may lure Pernod, Europe’s second-biggest distiller, or Diageo, the world’s largest spirits company, said Davenport & Co. and Goldman Sachs.”

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