UK: Diageo shares surge on report of possible takeover by 3G Capital | Progresiv
Diageo Plc, the maker of Guinness stout and Johnnie Walker whisky, surged in early London trading on a report that Brazilian billionaire Jorge Paulo Lemann is considering a takeover bid. 
Lemann and other executives are in early stages of mulling an acquisition, according to Veja columnist Lauro Jardim. A spokeswoman in Brazil for Lemann declined to comment, as did a representative for London-based Diageo.
Diageo shares rose 8.7 percent to 1,914 pence, the steepest gain since November 2008. That valued the company at about 48 billion pounds (73 billion dollars).
Veja’s report fueled renewed speculation of takeover activity in an industry where consolidation has been rife. Diageo has played its part in that, last year gaining control of India’s United Spirits Ltd. Still, the chances of an offer for the maker of Smirnoff vodka remain slim, according to analysts at Jefferies.
Lemann and his partners also have profited from consolidation in the alcoholic beverage industry. They combined Latin American brewers, then engineered an $11 billion merger with Belgium’s Interbrew NV in 2004. In 2008, they led the $52 billion union with Anheuser-Busch Cos. to form the world’s largest beer manufacturer, Anheuser-Busch InBev NV. (www.esmmagazine.com)
