Constellation Bids For Vincor

Constellation brands, the world’s biggest wine company, demonstrated its ambitions for further growth yet again this month with a bold bid for Canadian company Vincor.

Constellation Brands, the world’s biggest wine company, demonstrated its ambitions for further growth yet again this month with a bold bid for Canadian company Vincor.

Vincor, which just last year bought UK-based Western Wines, has rejected the CAN$1.1 billion offer, or $36 per share, calling it “opportunistic and inadequate.” However, the board has indicated it would be open to other offers that “accurately include the company’s prospects,” it was reported.

 “Constellation’s approach does not fully value such savings ($16m in annual cost savings), the momentum of our premium brands or Vincor’s projected growth,” commented Donald Triggs, Vincor’s president and chief executive.

Vincor has indicated that it is seeking other takeover bids, with Triggs confirming that five other companies had been contacted. Constellation, however, remained bullish, with chief executive Robert Sands commenting in the media, “There won’t be anybody who can, or would, pay $36 a share.”

Vincor shares dropped 13% at the beginning of August following a drop in first-quarter profits (as reported in db news analysis last month) but have remained constant since news of the bid broke.