Friday, March 11, 2005

Byron and Arrowood - where's the other shoe?

Its been several months now since the emminent deal between Legacy Estates (owners of Freemark Abbey) and Constellation over the Byron and Arrowood wineries was leaked. I've heard that Legacy has been working on this since last September(!) so when will it finally close?

Wednesday, the Arrowoods apparently let out a premature press release announcing that the deal was closed and that Dick and Alis Arrowood would stay on in the new company. Soon after, Constellation countered that release, saying that "nothing has been signed". So what gives? Is there last-minute trickery afoot?

This wouldn't be the first time that Legacy Estates announced something that they never closed. In 2003, they announced that they were buying Gordon Brothers in Washington state. Although announced as a "done deal" it was never completed and the parties walked away. Although that doesn't appear to be the case here, one wonders why this is taking so long to close. If Constellation can bid for and close Mondavi in 60 days, why does it take twice that long to close a deal for two small wineries......?


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