LONDON (Reuters) - France's Pernod Ricard will announce an agreed bid with its partner U.S.-based Fortune Brands to takeover UK rival Allied Domecq on Thursday in the industry's largest reshuffling in years.

The move will help Pernod close the gap on spirits industry leader Diageo.

Pernod said it will hold a news conference on Thursday to announce the deal which people close to the matter said values Allied (up $0.02 to $0.05, Research) at £7.4 billion ($14.2 billion) and will make Pernod clearly the world's second biggest spirits group.

"Today, Thursday 21 April, Pernod Ricard announces the launch of a friendly takeover bid for Allied Domecq," a Pernod statement said on Wednesday issued ahead of time in error.

The deal by the French-American partnership is pitched at 670 pence a share for the UK-based maker of Ballantine's whisky, Beefeater gin and Sauza tequila. Pernod and Fortune (unchanged at $94.10, Research) have agreed to divide up Allied's brands between them.

Allied directors met earlier in the day to agree the takeover, and Pernod and Fortune will now announce a deal early on Thursday to coincide with Allied's half-year results.

Allied shares closed at 643p a share, valuing the company at £7.1 billion. The shares jumped from around 540p when Allied confirmed on April 5 that it had held talks about a bid.

Including Allied's debt of around £1.7 billion, the total deal values Allied at more than 9 billion pounds.

Analysts said the Allied's share price has lagged behind the offer price as the deal will still need approval from various regulators and will take some months to complete.

Other sources have said that 80 percent of the bid will be in cash, with Fortune putting up about £2.8 billion of the cash to buy a number of Allied brands, and the remaining 20 percent being funded from Pernod shares. Pernod will take on debt of around £3.12 billion.

The French group led by Chairman Patrick Ricard vies with Allied as the second largest spirits group in the world behind Diageo, and has been eager to expand since it and Diageo carved up the Seagram spirits empire for $8.5 billion in 2001.

Pernod, the maker of Chivas Regal scotch, Martell cognac and Jacob's Creek wines, is keen to add brands to bolster its U.S. business and the deal will make it a strong No. 2 in the world behind Smirnoff vodka and Johnnie Walker whisky group Diageo.

Fortune, home to Jim Beam bourbon, is keen to expand its spirits side after it announced a deal in March to spin off its office products unit and focus on three businesses, one of which is wines and spirits.

To avoid the eye of the competition regulators, Fortune will pick up Allied's Courvoisier cognac as Pernod has rival Martell, and also Pernod's Larios gin with Pernod keeping Beefeater from the Allied stable and its own Seagram's gin, while Fortune may get Allied's Spanish whisky DYC.

Among other Allied brands, Pernod will get Ballantine's and Kalhua as well as Beefeater, while Fortune gets Sauza as well as Larios and Courvoisier.

As part of the deal, Pernod will take on Allied's fast-food restaurants chains Dunkin' Donuts, Baskin-Robbins and Togo's, and announce the intention to sell off the three chains.

Pernod, which makes Ricard and Pastis 51 anis-based spirits, had initially looked at an Allied bid in 1999, but that coincided with Philip Bowman taking over as Chief Executive of Allied and its financial performance dramatically improving.

J.P. Morgan and Morgan Stanley are advising Pernod, Credit Suisse First Boston is with Fortune while Goldman Sachs is advising Allied.

Debt for the deal is being arranged by J. P. Morgan, Morgan Stanley, French banks BNP Paribas and Societe Generale, Britain's Royal Bank of Scotland and Citigroup.