Beam (BEAM) Takeover Chatter Reignites as Japanese Distribution Partner May Bid
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Price: $22.74 --0%
Overall Analyst Rating:
NEUTRAL (
Up)
Dividend Yield: 1.1%
Revenue Growth %: -28.0%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 1.1%
Revenue Growth %: -28.0%
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Shares of Beam, Inc. (NYSE: BEAM) are active in early trading Monday amid chatter that it might be a new M&A target.
According to Bloomberg, Japan's Suntory was said to be in talks with Diageo plc (NYSE: DEO) over a possible bid for Beam, though sources said the firm could go it alone if needed. Any bid probably won't be made at the current share price given that Suntory sees Beam shares a little overvalued given its 17 percent run higher in 2012.
Suntory's bid for Beam would aid it in forming a stronger overseas expansion while offsetting a "shrinking population" in ins home country. It has made multiple non-alcoholic acquisitions over the last few years, Bloomberg notes, while peer Kirin Holdings has bolstered its alcoholic offerings.
Beam and Suntory already have an alliance, with Suntory distributing Canadian Club, Sauza tequila, and Laphroaig scotch in Japan. The two recently signed a deal to expand that distribution network to include Jim Beam and Marker's Mark.
Shares of Beam are flat in early trading. Its current market cap is about $9.5 billion.
According to Bloomberg, Japan's Suntory was said to be in talks with Diageo plc (NYSE: DEO) over a possible bid for Beam, though sources said the firm could go it alone if needed. Any bid probably won't be made at the current share price given that Suntory sees Beam shares a little overvalued given its 17 percent run higher in 2012.
Suntory's bid for Beam would aid it in forming a stronger overseas expansion while offsetting a "shrinking population" in ins home country. It has made multiple non-alcoholic acquisitions over the last few years, Bloomberg notes, while peer Kirin Holdings has bolstered its alcoholic offerings.
Beam and Suntory already have an alliance, with Suntory distributing Canadian Club, Sauza tequila, and Laphroaig scotch in Japan. The two recently signed a deal to expand that distribution network to include Jim Beam and Marker's Mark.
Shares of Beam are flat in early trading. Its current market cap is about $9.5 billion.
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