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Bronfman shuns Seagram
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September 8, 2000: 2:15 p.m. ET
Seagram heir drops plans to bid for spirits business; offer memos sent
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NEW YORK (CNNfn) - Seagram co-Chairman Charles Bronfman has dropped out of the bidding war for the company's spirits and wine business even as entertainment and media conglomerate accelerated its efforts to sell the operation, a source close to the situation told CNNfn.com Friday.
The New York-based company has sent out offer memorandums to companies interested in joining the auction process for the wine and spirits business. That process is now expected to take weeks, not months, the source said. New York investment bank Morgan Stanley Dean Witter is handling the sale.
Seagram's spirits and wine business has been valued at more than $7 billion. Potential bidders could include Allied Domecq as well as Britain's Diageo PLC (DEO: Research, Estimates) and Pernod Ricard SA of France. The privately owned, Hamilton, Bermuda-based Bacardi is also considered to be in the running for the Seagram's business while leveraged buyout firm, Hicks Muse & Tate may also make an offer.
Seagram declined comment.
 Bronfman, whose father founded Seagram (VO: Research, Estimates) 76 years ago, dropped out because he did not have as much to offer in terms of financing and brand synergies as potential bidders Allied Domecq and Diageo PLC, both of Britain.
Bronfman, 69, has concluded that it does make sense to pursue the liquor business, the Wall Street Journal reported Friday.
Bronfman's younger brother and Seagram CEO Edgar Bronfman said earlier this summer that the prospects of the liquor business staying in the family were "between very long shots and very, very, very long shots."
France's Vivendi is selling off Seagram, the world's third largest liquor company, following its proposed multibillion-dollar takeover announced in June. Vivendi bought Seagram for its Universal entertainment group.
Seagram's liquor business, headlined by brands such as Chivas Regal scotch and Captain Morgan's Rum, is expected to fetch up to $8 billion, the newspaper said.
Seagram slipped 50 cents to $59.12 in afternoon trading Friday. 
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