UBS Downgrades B-F: Bacardi Deal Not Feasible

Dear Client:Despite speculation in the industry that Bacardi and B-F are contemplating a merger (which was rampant at the WSWA), UBS downgraded B-F to sell because they don’t believe a deal is imminent. UBS analyst Kaumil Gajrawala said: “In our view, fundamentals remain weak and we don’t believe a takeout is imminent.”For one, he doesn’t believe Bacardi can afford it because their debt levels are “likely too high to support a deal.” UBS understands the “strategic rationale for both family