The Takeover Panel has set a late June deadline for a consortium headed by Constellation Brands to make a rival offer for spirits group Allied Domecq which has already agreed to be taken over by France's Pernod Ricard.
The panel issued the "put up or shut up" ruling to the Constellation camp as Allied issued the offer document for its takeover by Pernod and its scheme of arrangement, aimed at speeding up the Allied-Pernod deal.
The panel said Constellation must decide whether to issue a firm intention to bid by 5pm on June 29 or to say it will not proceed with a bid and then not make an approach for Allied for six months.
"We have enough time to put together a viable bid," said one source close to the Constellation consortium, while sources at Allied said it was co-operating with the Constellation camp to give them the details to help them do so.
Allied confirmed it will hold a shareholders' meeting on July 4 to approve its agreed £7.5 billion takeover by Pernod unless a counterbid emerges.
Pernod said in its document prepared for shareholders that its takeover of Allied should be completed on July 26 if it got all the necessary approvals and was not derailed by a counter bid.
It also said that it had got the green light for the deal from the France's AMF market watchdog on May 23.
Last month, Allied agreed to be bought by Chivas Regal whisky and Martell cognac group Pernod and its US partner Fortune Brands, which makes Jim Beam bourbon, for 545 pence a share in cash and 0.0158 new Pernod shares for each Allied share.
The two groups would split up Allied's brands with Pernod taking the majority such as Ballantine's whisky, Beefeater gin and Kahlua liqueur, while Fortune would get Sauza tequila and Maker's Mark bourbon.
This sparked interest in Allied as the last big buying opportunity in a industry where many players are controlled by family interests.
The world's biggest wine group, Constellation Brands, is leading a consortium which has made a bid proposal but has not yet made a formal offer for Allied.
Constellation is leading a team that includes Jack Daniel's maker Brown-Forman and financial firms Lion Capital and Blackstone Group.
Constellation is considering a bid likely to be around 700p per Allied share in cash, sources close to the situation said.
As Allied posts the offer document to its shareholders, its chairman Gerry Robinson wrote to shareholders saying that it was too early to determine whether the indicative proposal for Constellation might translate into a firm offer for Allied.
"The indicative proposal is highly conditional and is subject to considerable further due diligence by the consortium, confirmation of financing and a number of other significant conditions," Mr Robinson said.
The Pernod-Allied deal would link the world's second- and third-biggest spirits makers together to rival leader Diageo, which itself has not ruled out becoming involved in a bid with other parties for Allied Domecq.
Allied added that in March and April, the two months after its half-year end, it has continued to see volume growth from its core spirits and premium wines to give a satisfactory result despite disruption caused by speculation ahead of the Pernod bid and the possible Constellation one.
