By Abigail Summerville
July 26 (Reuters) - Brown-Forman, maker of Jack Daniel's whiskey, said on Sunday its board had received an unsolicited takeover bid from privately held spirits company Sazerac, but concluded the offer was "not actionable."
New Orleans-founded Sazerac, whose rye drink is the city's official cocktail, made a $32-per-share cash offer on May 1 for Brown-Forman, according to sources familiar with the matter. Sazerac, owned by Chairman William Goldring and his family, last week sent
a letter to Brown-Forman's Class A shareholders, most of whom are Brown family members and some board directors, the sources said.
Sazerac, whose 500 brands include Southern Comfort, Fireball and Myers's Rum, wrote that it sought to engage with the board about the offer terms and strategic rationale but substantive discussions had not taken place yet, according to the letter viewed by Reuters. The company said it stands ready to improve the terms of its offer if the board engages.
However, Wolf Pen Branch, a group of Brown family members representing a majority of Brown-Forman's Class A shares, on Sunday said it remains confident in the company's brands, adding Sazerac's proposal does not align with its vision for Brown-Forman's future.
Sazerac declined to comment. Brown-Forman, which also makes Woodford Reserve bourbon and Chambord liqueur, did not immediately respond to a comment request.
Reuters reported in May that Brown-Forman rejected the $32-per-share cash takeover offer from Sazerac that valued the company at about $15 billion.
The offer included the option for Class A shareholders to roll over into the combined entity with governance protections, enhanced liquidity and a dividend higher than Brown-Forman's current payout, according to the letter.
Sazerac's offer came after Brown-Forman and Pernod Ricard ended merger discussions in late April, having failed to agree on mutually acceptable terms.
Any sale would need the approval of the Brown family who have run the company since 1870.
Earlier this month, Louisville, Kentucky-based Brown-Forman announced its president and CEO Lawson Whiting would retire effective upon the appointment of a successor.
(Reporting by Abigail Summerville in New York and Abu Sultan in Bengaluru; Editing by Nia Williams, Chris Reese and Cynthia Osterman)
