+------------------------------------------------------------------------------+
Diageo Should Bid for Beam, Consortium Offer Possible: Liberum 2014-01-14 14:19:34.945 GMT
By Gaurav Panchal Jan. 14 (Bloomberg) -- For Diageo taking control of Beam would help it prevent Pernod from becoming a stronger no. 2 (U.S., globally), Liberum analyst Pablo Zuanic says. * Diageo’s U.S., global distribution would reap greater sales synergies helping Jim Beam close gap with Jack Daniels: Liberum * A Diageo bid 10% above Suntory’s offer for Beam would be 12% EPS accretive, aassuming 3% cost of debt, 10% cost synergies * Says a Diageo-led consortium bid is quite possible * For Pernod a deal would make it a solid no. 2 in U.S., reduce reliance on Absolut there, Liberum says. * Says a Pernod bid would bring net debt/EBITDA to 5.6x and generate no EPS accretion, a rights issue could be a stretch * Jan. 13: Suntory to buy Beam for $83.50-shr cash; Ackman a holder {NSN MZCA006TTDSH <go>} * Pernod said unlikely to make counteroffer for Beam, person says {NSN MZCI316JIJVK <go>} * Dec. 2012: Suntory held talks with Diageo about a potential joint offer for Beam, Bloomberg News reported {NSN MET53S0UQVI9 <go>}
Link to Company News:{DGE LN <Equity> CN <GO>} Link to Company News:{BEAM US <Equity> CN <GO>} Link to Company News:{2587 JP <Equity> CN <GO>} Link to Company News:{RI FP <Equity> CN <GO>} Link to Company News:{REMY US <Equity> CN <GO>} Link to Company News:{CPR IM <Equity> CN <GO>} Link to Company News:{BF/B US <Equity> CN <GO>}
For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}
To contact the reporter on this story: Gaurav Panchal in London at +44-20-7392-0511 or gpanchal2@bloomberg.net
To contact the editor responsible for this story: Brian Lysaght at +44-20-7330-7908 or blysaght@bloomberg.net