Allied Domecq, French wine and spirits group, was warned by its shareholders that they may sell their shares in the company if it continues negotiations with Pernod Ricard.

Pernod Ricard is bidding Allied offering £7.4 billion for the wine maker. Some Allied’s shareholders consider the bid to be a failure in the company’s strategy and demand the group to decline the offer.

Pernod offers 670p a share, while certain investors say a 700p-a-share bid is more appropriate for the company.

Constellation Brands, the world’s biggest winemaker, confirmed Monday it prepares a counterbid for Allied saying the offer would be more lucrative for the winemaker. Constellation said it is "at an early stage of evaluating its options with a number of potential partners" over the possible bid for Allied. The company expanded on the market with its famous brands Almaden and Inglenook.