Remy Cointreau shares rise on bid talk

 
Guy Bentley
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French drinks company Remy Cointreau has seen its share price jump on the back of speculation that Jack Daniel's maker Brown-Forman is considering a bid for the company.

Shares rose by 10 per cent but have now pared back to a more modest 3.8 per cent gain.

According to the Betaville blog "tentative discussions have been held between investment banking advisers to both companies, with Lazard said to be representing Remy Cointreau and its controlling shareholders."

However, the blog said there were no formal discussions taking place between the two companies.

Remy has been under pressure from falling sales in China, which had been an important growth market for the company. The country’s demand boom had brought huge benefit to the company's high-end liquors. For example, its Louis XIII cognac, which sells at €2,500 a bottle.

In November 2013, the company issued a profit warning and saw its chief executive officer quit in January.

Soon afterwards the company announced the new head of its cognac division as Eric Vallat, a top executive from luxury conglomerate LVMH.

(Google)