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AB InBev Owners Linked With Diageo Bid, Shares Jump

June 6, 2015

Diageo’s share price surged today in the U.S. on a report in Brazilian publication Veja that the company is in the crosshairs of Brazilian billionaire Jorge Paulo Lemann’s 3G Capital. A report in Bloomberg late this afternoon cited Veja’s Lauro Jardim as linking Lemann’s group with a potential acquisition of Diageo, the world’s largest spirits company. 3G is only in the early stages of looking at a potential bid, the report said. Diageo’s share price jumped 8% to $118.09 on the New York Stock Exchange today, marking its biggest daily gain since 2008.

3G is led by Lemann, Carlos Alberto Sicupira and Marcel Herrmann Telles, all controlling shareholders and board members of AB InBev, the world’s largest brewer. 3G has made a number of high-profile moves of late, acquiring Burger King in 2010 and Canada’s Tim Horton’s chain last year. The group also teamed with Warren Buffett to buy Heinz in 2013, and followed that up with the acquisition of Kraft earlier this year. They’re currently merging these two food giants. In addition to the fresh Diageo rumors, 3G has recently been linked with trying to facilitate the long-awaited merger of AB InBev with top global rival SABMiller.

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