Brown-Forman up 5% after confirming discussions with Pernod Ricard

Brown-Forman (BF.A) (BF.B) B shares are up $1.17, or nearly 5%, to $26.91 in early trading after the company last night stated: “We note the recent market rumors regarding a potential business combination involving Brown-Forman and Pernod Ricard (PDRDF). Brown-Forman regularly explores and evaluates strategic opportunities, and can confirm it is engaged in discussions with Pernod Ricard. If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders. Synergies from the contemplated combination are expected to be significant, creating a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families.” No agreement has been reached as to the terms of any possible transaction, the company added.