Constellation Brands Inc (STZ.N), maker of Corona and Modelo beers, has offered to buy Jack Daniel's owner Brown-Forman Corp (BFb.N), CNBC reported on Tuesday, citing people with knowledge of the matter.
Brown-Forman is not interested in selling, but has informed the board of Constellation Brands' interest, the report said, citing sources. (cnb.cx/2qgRZYM)
Shares of Brown-Forman, which has a market cap of about $22 billion, fell 3.8 percent to $54.93 in late afternoon trading on Tuesday. Constellation slipped 1.3 percent to $181.72.
The Brown family, fifth-generation owners of Brown-Forman, control a majority of voting shares and have historically indicated that they do not want to sell the company, according to the report.
Brown-Forman declined to comment, while Constellation Brands said it was company policy to not comment on rumors or speculation regarding any transaction.
(Reporting by Natalie Grover in Bengaluru; Editing by Anil D'Silva)