Diageo may bid for Allied

Drinks giant Diageo could yet join the bidders hoping to buyBristol wine and spirits company Allied Domecq, according to reports.

So far French company Pernod-Ricard has tabled a bid of GBP7.4billion and Constellation Brands, owner of cider and wine groupMatthew Clark, has put an indicative offer of GBP7.75 billion on thetable.

But it is thought that American-owned Constellation may need morecash backing than that offered by its consortium partners.

They are Brown Forman, owner of Southern Comfort, and privateequity firms Lion Capital and Blackstone.

To that end, it is believed that Constellation is looking to bringDiageo in with the …