Brown-Forman board says Sazerac unsolicited bid not actionable

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.