Brown-Forman Spurns Constellation's Acquisition Approach

Brown-Forman Corporation (NYSE: BF-A) (NYSE: BF-B) rejected a buyout bid by Constellation Brands, Inc. STZ Tuesday but conveyed the offer to the board, according to a CNBC report.

The Jack Daniel’s owner allegedly said it had no interest in a sale, a perspective that aligns with the Brown family’s historical strategy. The fifth-generation owners have long maintained their unwillingness to sell and, boasting a majority of the company’s voting power, have thus far been successful.

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That record meant little to investors, though, as the stock rallied as much as 8.7 percent Monday and 6.5 percent Tuesday on takeover rumors. Trading halted on CNBC’s late-afternoon report, after which values fell to rest down 4.1 percent on the day.

Constellation Brands, whose portfolio includes Corona and Svedka Vodka, is said to remain interested in a merger, but the entities are not discussing possibilities. Terms of the initial offer are unknown, and Constellation could not be reached for comment.

Constellation Brands closed down 1.7 percent at $180.86.

Posted In: CNBCNewsRumorsM&AMediaCoronaJack Daniel'sSvedka Vodka
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