Brown-Forman (NYSE:BF), the company that produces Jack Daniel’s, has reportedly turned down a $15 billion acquisition bid from its competitor, Sazerac.
Sazerac’s $32 per share cash offer was declined by Brown-Forman earlier this week, reported the Wall Street Journal on Tuesday. The majority of the voting stock of Brown-Forman, a publicly traded company, is controlled by the Brown family, while Sazerac is a privately owned family business.
Sazerac's all-cash bid, backed financially by Wells Fargo & Co. (NYSE:WFC) and Apollo Global Management (NYSE:APO), would have given Brown-Forman Class A shareholders the option to sell their shares for cash or transfer them into the newly formed company.
Brown-Forman and Sazerac did not immediately respond to Benzinga‘s requests for comment.
Brown-Forman-Pernod Ricard Ends Merger Talks
This rejection comes weeks after Pernod Ricard S.A. (OTC:PRNDY) and Brown-Forman mutually ended merger talks after failing to agree on the deal's structure and financial terms.
Both companies said they remain focused on their independent growth strategies, while reports suggested that the talks were complicated by strong family ownership, including the Brown family's majority voting control at Brown-Forman.
BF Price Action: Over the past year, Brown-Forman stock declined 23.98%, as per Benzinga Pro. On Tuesday, the stock ended 1.01% closer at $26.56.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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