Pernod to sell off Wild Turkey

French drinks group Pernod Ricard announced plans for a 1 billion-euro ($1.35 billion) rights issue yesterday and the sale of its Wild Turkey bourbon brand to Campari for $575 million to cut debt.

The cash call, which coincided with a profit warning, highlighted concerns about Pernod's ability to manage its net debt of more than 12 billion euros ($14.51 billion) in the current unpredictable environment, analysts said.

Pernod, the world's second-biggest drinks group behind Diageo, borrowed heavily to acquire Absolut vodka maker Vin & Sprit AB from Sweden in July last year and had to sell some brands to meet European Commission competition requirements.