British drinks group Allied Domecq has pulled out of the race for the $8 billion-plus Seagram spirits business, leaving the auction open to just two parties.
Allied, the early favourite for the Seagram brands, said in a statement it did not submit a bid "as it would not have been in the interests of shareholders".
France's new media giant Vivendi Universal said yesterday it had two serious bids for its Seagram drinks empire.
Industry sources say an Anglo-French alliance between Diageo and Pernod Ricard is in pole position. The other bid is from privately-owned rum maker Barcardi and the Jack Daniel's whiskey maker Brown-Forman.
