Posted on: Wednesday, October 20, 2004

Prospective buyer bids $970M for Mondavi

Associated Press

SAN FRANCISCO — Constellation Brands Inc., an international producer and marketer of wine, spirits and beers, said yesterday that it made a $970 million cash bid to acquire The Robert Mondavi Corp., the California-based winemaker. Mondavi shares surged 30 percent on the news.

On Monday, Mondavi officials said they had a received an unsolicited offer for the company's luxury wine business, but declined to identify the prospective buyer. The company has reviewed the proposal but has not rejected it, Mondavi said on Monday.

Constellation said that its offer amounted to a premium of 37 percent over the closing market price of Mondavi's publicly traded Class A shares as of Oct. 11. The Fairport, N.Y.-based company would also assume $333 million of Mondavi net debt.