Allied Domecq has today sent a letter to its shareholders recommending them to accept Pernod Ricard’s offer for the company, despite a possible second offer waiting in the wings.

The second offer from a consortium led by Constellation Brands and supported by the Brown-Forman Corporation, Lion Capital and Blackstone Group was tabled earlier this month but Allied says it remains highly conditional.

The consortium has until June 29 to confirm whether or not it will make a firm offer.

In the letter to shareholders, Allied’s chairman, Sir Gerry Robinson, says that the Allied board has unanimously recommended that its shareholders vote in favour of the Pernod Ricard bid.

“In these increasingly challenging market conditions, the need for further consolidation in the distilled spirits industry has become increasingly apparent,” Sir Gerry says.

The offer, he continues, “provides Allied Domecq shareholders with the ability to participate in the future success of Allied Domecq's brands within an enlarged Pernod Ricard business.”