Brown-Forman's stock rallies after report of Constellation Brands' buyout interest

Shares of Brown-Forman Corp. rallied 1.5% in afternoon trade Tuesday, paring earlier gains of as much as 4.9%, after CNBC reported that Constellation Brands Inc. had made an approach to buy the owner of the Jack Daniels and Canadian Mist brands. Shares of Constellation Brands, which brands include Corona, Modello and Ballast Point beer brands, were down 1.3%. CNBC did not report any possible terms of the deal. At current share prices, Brown-Forman has a market capitalization of $22.24 billion, according to FactSet, while Constellation Brands' market cap is $35.53 billion. Brown-Forman's stock has run up 28% year to date, while Constellation Brands shares have climbed 19% and the S&P 500 has gained 7.2%.

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