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Absolut Vodka May Be A $5.5 Billion Free Spirit

With Sweden's victorious center-right opposition party talking about privatizing many state-owned companies, Vin & Sprit AB, owner of Absolut vodka, may be up for grabs. Absolut is the world's third-largest premium liquor by volume, after Smirnoff vodka and Bacardi rum. Pernod Ricard SA's chief executive, Pierre Pringuet, said the world's No. 2 liquor maker by volume could be a possible bidder. Absolut would help Pernod expand in the U.S., where it is currently the No. 4 competitor by volume--but it would have to give up the distribution rights to Stolichnaya vodka, which it is in negotiations to buy outright. Other possible bidders include Constellation Brands Inc., Fortune Brands Inc., Brown-Forman Corp.--all based in the U.S.--and Bermuda-based Bacardi Ltd. Beer maker Anheuser-Busch Cos., which has indicated an interest in entering the spirits market, might consider a bid. Analysts regard Fortune as a potential front-runner because it already distributes Absolut in the U.S. and is part of a joint venture with Vin & Sprit to distribute the vodka overseas. Vin & Sprit could be valued at $5.5 billion, analysts say.

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