The Swedish government has been analyzing its strategic alternatives for Vin
& Sprit AB, the maker of Absolut Vodka. One company—Fortune Brands—that
has been rumored to be a potential acquirer of the upscale brand has
officially expressed its interest. Fortune chairman and chief executive Norm
Wesley explained during an April 26 conference call: "We've said for a long
time that we're interested in enhancing our spirits business if attractive
opportunities were available, so we will obviously take a close look at the
opportunity ..." Experts estimate that Absolut would have a price tag of
around $6 billion. Fortune most likely would have to compete for V&S
against other top liquor makers, including Diageo plc, Pernod-Ricard SA and
Bacardi & Co. Ltd. TheDeal.com reporter Renee Cordes, however,
pointed
out that the likely strategic bidders face antitrust issues, therefore making
a private equity offer a viable
alternative.—Gerald Magpily
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