Constellation Brands could struggle to raise the financing needed to fund an offer for Allied Domecq, media reports suggest.

Allied Domecq received an indicative proposal from a consortium led by Constellation Brands regarding a potential offer for the company on Friday.

However, reports in the national media suggest that the consortium may struggle to fund an all-cash bid because Constellation already has debts of approximately $3.2bn.

Analysts estimate that Constellation would need to raise approximately $11bn in the capital markets to fund the bid.

Allied said that it was too early to say whether Constellation’s highly conditional proposal would result in a firm offer for the company and was still progressing with an offer made by Pernod Ricard last month.