March 27 (Reuters) - Shares in French spirits maker Pernod Ricard clawed back some losses on Friday after slumping in the previous session when it confirmed talks on a possible tie-up with Jack Daniel's owner Brown-Forman.
At 0744 GMT, Pernod shares were up 3.2% at 61.86 euros.
Analysts at Jefferies, J.P. Morgan and Bernstein said a deal could make strategic sense in a sector under pressure from weakening demand for alcoholic drinks and uncertainty from an on-and-off trade war.
In a note to clients,
Jefferies analysts said the merger could help reignite growth in an industry stuck in a lull.
Bernstein analysts said Thursday's sharp share moves implied a large transfer of value from Pernod to Brown-Forman and no value creation, "both of which could be wrong".
Still, it added, a deal would not automatically fix the sector's most pressing issue: top-line growth.
Pernod shares closed on Thursday almost 6% lower at 59.94 euros, while Brown-Forman's jumped 9% to $25.74.
J.P. Morgan analysts questioned whether Pernod could realistically pursue such a large deal given its already stretched balance sheet, though they saw strategic merit in cost synergies and wider use of each company's distribution networks.
As of Thursday's close, Brown‑Forman had a market capitalisation of almost $12 billion, while Pernod's stood at around 15 billion euros ($17 billion).
(Reporting by Jakob Van Calster. Editing by David Goodman and Mark Potter)
