Diageo Considers $2 Billion Bid For Jose Cuervo (DEO, BF-A, BF-B)

According to the Sunday Times, U.K.-based beverages company Diageo (NYSE: DEO) is considering a $2 billion bid for tequila brand Jose Cuervo.While there is interest in Jose Cuervo from elsewhere, including Brown-Forman (NYSE: BF-A) (NYSE: BF-B), Diageo, the worlds biggest spirits maker, is considered the front runner because it already owns the international distribution rights to the brand.Diageo products include Tanqueray gin, Smirnoff vodka, Johnnie Walker whiskey and Guinness beer and, with the company looking to expand into emerging markets, Jose Cuervo would be an ideal addition to its beverage universe.The potential acquisition comes in the wake of news earlier in the year that DEO had agreed a deal to acquire Turkish spirits company Mey IçkiSanayi ve Ticaret AS for $2.1 billion.Diageo closed Friday at $73.88, up $0.65 on a volume of 0.51 million shares.