Brown-Forman Spurns Constellation's Acquisition Approach

Brown-Forman Corporation (NYSE: BF-A) (NYSE: BF-B) rejected a buyout bid by Constellation Brands, Inc. STZ Tuesday but conveyed the offer to the board, according to a CNBC report.

The Jack Daniel’s owner allegedly said it had no interest in a sale, a perspective that aligns with the Brown family’s historical strategy. The fifth-generation owners have long maintained their unwillingness to sell and, boasting a majority of the company’s voting power, have thus far been successful.

See Also: Founders Brewing Co.'s Journey From Near-Bankruptcy To Best-Seller: 'Our Investors Thought We Were Crazy'

That record meant little to investors, though, as the stock rallied as much as 8.7 percent Monday and 6.5 percent Tuesday on takeover rumors. Trading halted on CNBC’s late-afternoon report, after which values fell to rest down 4.1 percent on the day.

Constellation Brands, whose portfolio includes Corona and Svedka Vodka, is said to remain interested in a merger, but the entities are not discussing possibilities. Terms of the initial offer are unknown, and Constellation could not be reached for comment.

Constellation Brands closed down 1.7 percent at $180.86.