bloggingbuyouts

In 1917, the Swedish government created a company with a monopoly on the alcoholic beverage business within its borders. The company, V&S Group, is still owned by the government, making internationally known brands such as Absolut. Now comes word that the Wallenberg family, through its public holding company Investor AB, is interesting in buying the firm, for as much as $6 billion.

The Wallenbergs are major holders of many of Sweden's largest companies, including Ericsson, ABB Ltd. (NYSE: ABB), Scania, SAAB, Husqvarna and Electrolux (OTC: ELUXY). Investor had a rough third quarter in 2007, posting a loss of $1.21 billion, attributed to the liquidity problem in the global credit market. It apparently hasn't quenched the family's thirst for new properties.

Investor is not the only suitor for V&S, though; industry giant Diageo (NYSE: DEO), which makes Smirnoff vodka, has already taken a tasting and found it worthy of further consideration.

Investor's deal would be made as a joint bid with the private equity firm EQT, of which Investor is the largest shareholder. Investor's net asset value at the end of the third quarter was around $24 billion.

V&S reached almost $1.6 billion in sales in 2006. It has 2,500 employees, and makes wines, Absolut spirits and other distilled products.