Bid Ambitions Vanish Into Pensions Void

Mail on SundayMay 02, 2005

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Summary


The woodwork is opening up and the pension bugs with their power to scupper takeover bids are crawling out again. At drinks giant Allied Domecq, the bidding consortium led by the world's biggest wine group, Constellation Brands, and Brown-Forman, owner of Jack Daniel's, could take fright before it assembles even the bare bones of a takeover offer.

The highly geared nature of any likely bid has already attracted the attention of Ron Amey, chairman of Allied's pension fund trustees, who is said to be insisting that a Pounds 387 million black hole in the scheme should be plugged as a precondition for giving the green light to any offer.

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Extract


Bid Ambitions Vanish Into Pensions Void

Rival bidder Pernod has pledged Pounds 100 million for the fund over the next two years in an attempt to win support for its 670p-a- share offer.

The possibility that a pensions deficit at Marconi could s...

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