Brown-Forman quiet over Constellation bid report

Jack Daniel’s producer Brown-Forman has declined to comment on a report stating it has rejected an acquisition offer from fellow US drinks group Constellation Brands.

Brown-Forman produces the Jack Daniel’s family of brands, in addition to Finlandia Vodka and Herradura Tequila

On Tuesday (23 May), CNBC reported that Constellation approached Brown-Forman with an acquisition offer, citing sources close to the matter.

The report also states that Brown-Forman, which is a public company but has a shareholding controlled by fifth generation members of its founding Brown family, rejected the offer.

A spokesperson for Brown-Forman said the Louisville-based group “does not comment on rumours or speculation”, while Constellation Brands has not yet responded to requests for comment.

According to Market Watch, Brown-Forman has a value of US$22.24 billion, while Constellation Brands’s value sits at US$35.53 billion.

Following the news, Brown-Forman’s share price fell more than 6% (by Wednesday morning, 24 May), while Constellation’s share price increased 1.7%.