:. Food Industry News

Categories: Mergers and Acquisitions

Pernod Declines to Comment on Stolichnaya Deal Report

Source: Reuters
17/12/2007

Paris, Dec. 17 - French wines and spirits group Pernod Ricard declined to comment on Monday on a UK newspaper report that it was close to winning full rights to the Stolichnaya vodka brand for 1 billion euros ($1.45 billion).

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"We don't comment on rumours," said a Pernod spokesman when asked to comment on the report in The Mail on Sunday newspaper.

Pernod acquired the rights to Stolichnaya outside Russia when it bought Allied Domecq in 2005, and in September that year extended them for five years. The agreement expires Dec. 31, 2010.

It has been in talks with SPI Spirits, the holder of the rights outside Russia, and the Russian Federation about acquiring full rights to the brand almost ever since.

In its last financial year, Pernod booked a $55 million writedown on the deal, saying it was no longer probable it would exercise pre-emption rights on the brand.

Some analysts interpreted this as a sign Pernod was effectively abandoning its quest for Stolichnaya at a time it is also aiming to buy Swedish Absolut vodka maker Vin & Sprit, but the company insisted this was not the case.

Pernod has said since it would like to wholly own either Stolichnaya or Absolut, but not both brands.

Pernod shares were up 1.1 percent at 152 euros by 1030 GMT.



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