Seagram bidding starts

Seagram - now part of Vivendi Universal - is worth more than US$7bn, and includes such premium brands as Chivas Regal scotch, Crown Royal Canadian whisky, Captain Morgan rum and Don Julio tequila. The quality UK wine merchants Oddbins is also part of the group, and Seagrams also controls distribution for Absolut vodka.

Allied Domecq is also understood to be in the bidding. Diageo and Pernod Ricard are putting in a joint bid, and Brown-Forman, who make Jack Daniels whisky, are understood to be bidding with Bacardi as a partner.

A spokeswoman for Seagram said they will be issuing a statement as soon as bidding closes at 5pm, Eastern Standard Time, tonight. The winner is expected to be announced before the end of the year.