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Brown-Forman Corporation (BF-B) Says No to Sazerac’s $15 Billion Takeover Bid, Again
['Fatima Gulzar', 'Tue', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
Brown-Forman Corporation (NYSE:BF-B) rejected a renewed $15 billion takeover bid from privately held spirits company Sazerac, calling the offer "not actionable."
Why the Brown Family Keeps Saying NoThe Brown family, through a voting group called Wolf Pen Branch, controls more than half of Brown-Forman's voting stock, meaning no sale can happen without their approval regardless of shareholder pressure.
This comes at a vulnerable moment for Brown-Forman Corporation (NYSE:BF-B): its revenue has declined for three straight years.
This makes you wonder: is Brown-Forman's independence, defended twice now, actually the right call for shareholders, or is Sazerac's offer the better outcome the Brown family won't take?
Brown-Forman is also smaller in one way: Sazerac's own $6.6 billion in trailing sales actually beats Brown-Forman's roughly $5.1 billion, underscoring how much ground Brown-Forman Corporation (NYSE:BF-B) has lost as its performance has struggled, the very weakness Sazerac is trying to exploit.