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Diageo, Pernod ink deal
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December 6, 2000: 5:01 a.m. ET
British and French drinks firms sign pact for joint Seagram spirits unit bid
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LONDON (CNNfn) - British drinks firm Diageo PLC and France's Pernod-Ricard SA have signed an agreement setting terms for their joint bid for Seagram Co.'s spirits and wine business, Pernod-Ricard said Wednesday.
While the companies have said they would team up to bid for the Seagram business, Diageo and Pernod's formal agreement takes their bid up one step, outlining how Seagram's brands will be integrated and the management team to oversee it.
Analysts value the drinks unit of the Montreal-based entertainment conglomerate at more than $7 billion.
Diageo (DGE) shares were down 4.4 percent at 683.5 pence in London early Wednesday, while Pernod (PRI) was unchanged in Paris at  63.
Pernod didn't disclose any financial details of the agreement, and Diageo executives didn't immediately return calls seeking further comment.
Seagram's Chivas Regal and Crown Royal whisky brands are among those that could be added to Pernod's Havana Club Cuban rum and Jacob's Creek wine labels. Diageo's portfolio includes Guinness beer and Johnnie Walker Scotch.
Diageo and Pernod believe their plan for dividing the brands will prevent a lengthy antitrust review, The Wall Street Journal reported. Britain's Allied Domecq PLC (ALLD) is also bidding for the Seagram drinks business.
Seagram (VO: Research, Estimates) is shedding the division as it prepares to merge with French utility and communications company Vivendi and its pay-TV unit Canal Plus in a $34 billion deal. Vivendi shareholders voted overwhelmingly in favor of the merger Tuesday. 
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