Pernod aims to fast-track Allied Domecq takeover

Pernod-Ricard is gambling that it can persuade the lion's share of Allied Domecq shareholders to support its bid for the company, allowing it to fast track the process.

French drinks group Pernod, backed by US giant Fortune Brands, plans to use a scheme of arrangement for the proposed takeover of UK-based Allied, owner of brands including Courvoisier, Malibu and Tia Maria.

The process means a takeover can be pushed through more quickly, but needs the support of 75 per cent of shareholders rather than the 51 per cent required for a conventional takeover.

The offer price for Allied will be decided by the due dilgence process currently underway, but Pernod is expected to bid high in order to speed up the process and deter rivals. The City expects an offer at between 670p to 700p a share, valuing Allied at more than $7bn.

At that level, Allied chief executive Philip Bowman would make more than £18m through cashing in on shares and options.

If the deal goes through, Pernod will sell on at least £2bn worth of drinks assets to Fortune, owner of brands including Jim Beam and Knob Creek.

However, Allied's US foodservice operations, Dunkin' Donuts and Baskin-Robbins, are likely to be auctioned off rather than transferred to the the US company.

The most likely source of any counterbid is seen as Bacardi, which has been linked to a takeover of Allied in the past.

Bacardi has clashed with Pernod, owner of Havana Club, over the authenticity of the Cuban credentials of each of their white rum brands. Bacardi might be tempted to enter the fray if only to push up the price and ensure its rival pays as handsomely as possible for Allied.