CONSTELLATION’S CLOCK NO LONGER TICKING

According to Constellation, Vincor lost its chance to negotiate further with the wine giant’s proposed acquisition, and the deal has retired to the place where all lost business endeavors are doomed to squander. "It is unfortunate for Vincor shareholders that the Vincor board chose not to pursue the alternative that would maximize value for its shareholders, despite the board's failure to identify any other alternatives," said Richard Sands, chairman and chief of Constellation Brands. "The Vincor board refused to engage in any dialogue with us regarding our C$35 per share cash proposal." Sands added, "Constellation could not let this process continue indefinitely. In these circumstances, we will move on to other priorities." Vincor has said in the past that they “were open to talk to them [Constellation], so long as they gave a firm and fair offer north of C$35.”

However, analysts think the deal is not yet complete: "They're playing a little game of chicken here and at the end of the day, absent a bid from someone else, the Vincor board is going to be pressured to look at Constellation's bid and reevaluate it," said Tim Ramey, an analyst for D.A. Davidson & Co. "My guess is we'll know something next Monday morning because over the weekend they'll haggle about things, there will be some increase in Constellation's bid and they'll probably end up owning it." Could this be the end? Well only time will tell.