Sazerac Company’s all-cash bid of $32 per share for Brown-Forman Corporation has been rejected by the Brown family’s controlling voting block, Wolf Pen Branch LP, which called the proposal not actionable. The bid, outlined in a July 24 letter and white paper, aimed to create a combined entity with over $12 billion in 2026 revenue and more than $3 billion in EBITDA, second only to Diageo. Brown-Forman trades around $28 per share with a forward price-to-earnings ratio of about 16.8x, well below its 10-year average of around 30x, while the $32 offer implies roughly 21x projected earnings. The rejection marks the second failed M&A effort for Brown-Forman in 2026 after exploratory talks with Pernod Ricard ended in April. Short interest in Brown-Forman has risen to 11.46% of the float amid industry destocking and cautious hedge fund sentiment.
Brown-Forman CorporationSazerac's $32 cash bid rejected, indicating no near-term takeover premium; stock trades below bid price.
Diageo PLC
Pernod Ricard S.A.Sazerac's acquisition attempt failed, potentially wasting resources and signaling inability to gain control.