Allied Domecq, the UK based drinks group, has confirmed it is in takeover talks with Pernod Ricard of France. Allied Domecq, with a stock market value of £5.9bn (€8.62bn), is using Goldman Sachs. Pernod Ricard is being advised by JP Morgan and Morgan Stanley.

Last month Goldman Sachs was forced to resign as corporate broker to Diageo, a rival UK drinks group, because of its advisory relationship with Allied Domecq.