Constellation Brands Inc (STZ.N), which makes Corona and Modelo beers, has offered to buy Jack Daniel's owner Brown-Forman Corp (BFb.N), CNBC reported on Tuesday, citing people with knowledge of the matter. Brown-Forman is not interested in selling, but has informed the board of Constellation Brands' interest, the report said, citing sources. (cnb.cx/2qgRZYM)
Shares of Brown-Forman, which has a market cap of about $22 billion, fell 3.8 percent to $54.93 in late afternoon trading on Tuesday. Constellation slipped 1.3 percent to $181.72.
The Brown family, who are fifth-generation owners of Brown-Forman, own a majority of the voting power and have indicated historically that they do not want to sell their company, according to the report.
Brown-Forman declined to comment, while Constellation Brands did not immediately respond to a request seeking comment. (Reporting by Natalie Grover in Bengaluru; Editing by Anil D'Silva)
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Updated Date: May 24, 2017 01:45 AM