Investor disclosure now an issue as Constellation evades & GI Partners remains silent about Duckhorn sale

The accuracy of  Wine Industry Insight’s article about the proposed sale of Duckhorn Wine Company to Constellation by GI Partners remains officially unresolved as the two main parties in the transaction refuse to confirm or deny the deal.

 

GI Partners remains silent while Constellation evaded the question yesterday with this official waffle:

“Constellation Brands’ company policy is to not comment on rumors or speculation regarding any transaction. — Alicia Nestle, Manager, Corporate Communications.

 

Wine Industry Insight stands behind the multiple sources on which the article was based — including one from Constellation. All continue to insist their information is accurate.

 

Acquisitions provide big boosts to Constellation share prices

 

Acquisition activity is something that investors watch closely since a look at the most recent three show that share prices have made substantial increases after each one:

 

• Constellation stock was already outpacing its peers, but look what the Prisoner did for it!

• Meiomi or Ballast Point? Which acquisition helped Constellation’s share price most?

Source: Market Realist

 

 Duckhorn is a material matter that should be confirmed or denied

If Wine Industry Insight’s sources are correct, then Duckhorn would be the second-largest recent acquisition.

 

• Ballast Point: $1 Billion
• Duckhorn: $800 Million (neither confirmed nor denied)
• Meiomi: $315 Million
• The Prisoner: $285 Million

 

In terms of securities regulations, this is a material matter. It is now among information that shareholders and potential investors must weigh, especially in light of previous acquisition effects on stock value.

 

Constellation’s policy on non-comment has led it onto conflict with regulatory disclosure requirements for public companies.

 

Wednesday’s previous article

 

Amid no word at all from Constellation or GI Partners, Duckhorn exec says not for sale. Sources hold firm.