Brazilian billionaire Jorge Paulo Lemann and his partners in private equity firm 3G Capital are considering a potential bid for Diageo PLC, the world's largest producer of spirits, the Brazilian newsweekly Veja reported on Friday.
Lemann, who is Brazil's richest man, and partners Marcel Telles and Beto Sicupira, are in the initial stages of studying a buyout offer for Diageo (DGE.L), Veja reported in its Radar column, without saying how it obtained the information.
The magazine did not elaborate. Reuters has not independently confirmed the report.
U.S.-listed shares of Diageo jumped 8.7 percent on the report to close at $118.0 in heavy trading, the biggest gain in six and a half years.
Diageo had no immediate comment. Efforts to reach 3G Capital representatives in Rio de Janeiro were not successful.
London-based Diageo produces some of the world's leading beverage brands, including Johnnie Walker whisky, Smirnoff vodka, Tanqueray gin, Don Julio tequila and Guinness beer.
Lemann has embarked on a shopping spree in recent years that included buying Burger King from Diageo in 2010 and buying H.J. Heinz Co in 2013 in partnership with U.S. billionaire Warren Buffett.
Harvard-educated Lemann is the chief investor and strategist at 3G Capital. His equity company controlled 65 percent of the Brazilian beer market before embarking abroad to merge with Belgium's Interbrew in 2004 to form InBev, which bought U.S. brewer Anheuser-Busch in 2008.
Join the Conversation