Fortune Brands rises on report of possible breakup
Fortune Brands Inc., the maker of Jim Beam bourbon, rose the most in more than a year in New York trading after the Wall Street Journal reported that the company may work on a breakup plan with Pershing Square Capital Management.
There is no guarantee a breakup will take place, the newspaper reported, citing people familiar with the matter. Fortune's businesses include a home and security division, which makes Moen faucets and windows, the spirits and wine group, and the golf division, whose brands include Titleist and Footjoy.
Chief Executive Officer Bruce Carbonari took over Fortune Brands in January 2008, having previously served as president and chief operating officer. The shares had dropped 25 percent during his tenure before today. Carbonari led the home and security division from 2000 to 2006, doubling sales during the period.
The stock climbed $4.22, or 7.8 percent, to $58.60 at 4:01 p.m. in New York Stock Exchange composite trading. The gain was the largest since September 2009.
Fortune Brands doesn't comment on speculation, said Clarkson Hine, a spokesman for the Deerfield-based company. Bill Ackman, the activist investor who runs Pershing Square, didn't immediately return a telephone call seeking comment.
Ackman disclosed in October that it acquired an 11 percent stake in Fortune Brands, making the New York-based hedge-fund firm its largest investor. Fortune had planned to meet with Ackman to discuss his proposals, people with knowledge of the matter said last month.
Carbonari said last month that Fortune looked forward to talking with Ackman about the company.