Constellation Brands (NYSE: STZ) the owner of Corona and Svedka Vodka, has made an approach to acquire Jack Daniel's owner Brown-Forman (NYSE: BF.B).
Brown-Forman said it was not interested in selling, but informed the board of Constellation Brands' interest, said the people, who asked not to be named discussing private information.
Terms of any potential offer could not be learned, but Brown-Forman's market cap is hovering around $22 billion. Reports say there are no ongoing talks, however, Constellation has said it remains interested in a potential merger.
The Brown family, fifth-generation owners of Brown-Forman, owns a majority of the voting power and have indicated historically that they do not want to sell their company.
In its fiscal third quarter ended January 31, Brown-Forman reported a 4% drop in net income to $182 million from the prior year. The company worked through "a continued challenging global backdrop for consumer staples," it said, and lowered its full-year outlook.
Shares of Brown-Forman have gained 12 % over the last week, amid takeover rumors.
A representative for Brown-Forman declined to comment. A representative for Constellation Brands did not immediately respond to a request seeking comment.
Shares in Constellation tumbled $3.52, or 1.9%, to approach Tuesday’s close at $180.63, while shares in Brown-Forman plummeted $3.54, or 6.2%, to $53.38.
