Monday August 7, 2000 6:21 pm Eastern Time
Charles Bronfman Said Eyeing Bid For Seagram Liquor Unit
By Sue Zeidler
LOS ANGELES, Aug. 7 British food and beverages stake in Du Pont into an (Reuters) - Seagram Co. Ltd's company Diageo Group Plc entertainment titan that owns co-chairman Charles (quote from Yahoo! UK & everything from theme parks Bronfman, whose father Ireland: DGE.L) also is and a movie studio to the founded the business, may considered a strong contender world's largest music make a multi-billion bid for for the Seagram liquor company. The Bronfmans Seagram's liquor division, business, particularly after have been running Seagram which is being sold in the Diageo, owner of Johnnie for 76 years since Edgar merger with Vivendi of Walker whisky and Smirnoff Bronfman's grandfather France, industry sources said vodka, recently sold control of Samuel Bronfman bought on Monday. its food unit, giving it extra Joseph Seagram Co. cash for an acquisition. Seagram Co. Ltd. (Toronto: “There are certainly some “Charles Bronfman would VO.TO - news) on Monday brands within the Seagram certainly have an advantage declined to comment on the portfolio that we think are over other bidders because of speculation, which also has excellent brands,” Diageo his inside knowledge of the been reported in various finance director Nick Rose business as well as his newspapers. The liquor told Reuters in mid-July. relationships, not just with the business is home to such seller, but with all the joint brands as Absolut vodka and Analysts in Europe also have venture partners that Seagram Chivas Regal and is expected said Britain's Allied Domecq has in the liquor side of the to fetch about $7 billion. (quote from Yahoo! UK & house,” said Greif. Ireland: ALLD.L), France's The New York Times on Pernod-Ricard SA and U.S. One disadvantage Bronfman Monday cited sources as private equity group Hicks, may have is the sheer size of saying Bronfman had hired Muse, Tate & Furst are likely some of the competing investment bank Bear Stearns bidders. bidders, who will also have to prepare the bid for the synergistic attributes they can liquor division. A The Bronfman family owns 24 bring to bear on their bids, spokeswoman for Bear Stearns percent of Seagram and many analysts said. Bankers declined comment. industry watchers have said suggested Bronfman may that family members want to choose to team up with a “There's no surprise that a keep the liquor unit family- strategic partner to make his family member would want to owned. bid as competitive as possible. buy this, but even if an offer is generated, the list of other Charles Bronfman is the uncle potential bidders is going to be of Edgar Bronfman Jr., the expansive,” Lloyd Greif, chief executive of Seagram, president of investment who in five years has taken it banking firm Greif & Co., from a liquor business with a told Reuters. highly-profitable 24 percent