Drinks giant Diageo has reportedly been approached by Brazilian investment firm 3G Capital regarding a potential takeover.
The news has driven shares in the Smirnoff Vodka to Johnnie Walker whisky group up to a near record seven year high.
In April, Diageo announced that net sales fell by 0.7% in the last quarter on the back of flagging global demand and the after-effects of a weak economic recovery.
3G Capital, which owns Burger King and the Kraft Heinz company, has also been linked with a possible takeover of brewer SABMiller.