Allied is currently contesting the control of Captain Morgan rum with Seagram and Diageo in the Puerto Rican courts, after it struck an alliance with rum supplier Destileria Serrelles for control of the brand. The supplier claims that the Seagram deal triggers a change-of-control clause that would allow it to take control of the brand and sell it to Allied.
Philip Bowman, Allied's CEO, is expected to offer to buy Diageo's smaller Malibu brand, worth approximately £750m, in return for withdrawing his claim to ownership of Captain Morgan, the number two US brand.
Diageo is looking to sell Malibu to overcome the concerns of US regulators who believe that the deal would allow Diageo, the third-biggest seller of rum in the US, and industry leader Barcardi to monopolise the US rum market.
The US Federal Trade Commission blocked a $8.1bn (£5.8bn) bid made by the UK drinks company and Pernod Ricard of France for Seagram last Wednesday.
Diageo is already in talks with Pernod Ricard over the sale of Malibu. It is believed that US spirit groups Fortune Brands and Jack Daniel's maker, Brown-Forman, are also interested in Malibu.
Allied yesterday revealed its full-year results, with pre-tax profits up 12% to £453m and turnover up 11% at £2.9bn. Although total volumes fell 1%, leading brands such as Beefeater gin saw growth. The news also comes as Allied reorganises its advertising agency roster for some of its core brands, including Tia Maria and Courvoisier.
This morning, shares in Allied fell by 4p to 347p on the London Stock Exchange.
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