Monday, November 01, 2004

Another Mondavi Bidder, none for Chalone

Word is that there's another bidder working on Mondavi. The identity is not known yet, but my guess is that its a major spirits company that wants to buy a completely integrated wine company (as opposed to buying one brand at a time and building a company around that) with an existing Sales and Admin infrastructure.

No other bidders have emerged for Chalone, who today announced they would accept an offer from DBR (Domaines Barons de Rothschild) to buy them out and merge them into a 3-way partnership with DBR, Constellation, and the Huneeus family of Napa's Quintessa. If other bidders, emerge, however, DBR can match their bid or they have to vote their shares toward accepting the higher offer. Chalone's extensive real estate holdings should make it an interesting target for its break-up value alone.

The lack of other bidders for Chalone is likely due to the 48% control of DBR. The current control of Mondavi by the Mondavi family appears to be less daunting to suitors.


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