Brown-Forman Board Confirms Unsolicited Sazerac Bid, Deems It 'Not Actionable'
BFA sits 16% above its 52-week low of $23.01.
Summary
Brown-Forman's board has officially received an unsolicited acquisition proposal from Sazerac and concluded it is not actionable. Sazerac's proposal offered $32-a-share in cash, and top Sazerac leaders sent a letter to a group of Brown-Forman investors about the proposal. Sazerac's letter also says the company is willing to improve offer terms if the board engages. With a market cap around $12 billion, any credible takeover attempt would be material, but the board's dismissal suggests the proposal lacked sufficient terms or premium. The prior rejection and now this public stance may deter further unsolicited advances, though Sazerac could return with a revised offer. The company's recent Q4 results showed a 63% drop in net income, which may have emboldened the approach.
At the time of this announcement, BFA was trading at $26.71 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12.1B. The 52-week trading range was $23.01 to $31.63. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.