Pernod Ricard chief Patrick Ricard could probably use a drink. Having won a hard-fought auction to buy the maker of Sweden’s Absolut vodka in a 5.63 billion euro ($8.87 billion) deal, its shares fell on concerns over the price. The world’s second-largest wine and spirits company outbid the favorite, Jim Beam bourbon maker Fortune Brands. Half of all Absolut is sold in the United States. Fortune said it would begin buying back shares and planned to continue a U.S. distribution arrangement for Absolut.

British insurer Friends Provident has rejected a 3.5 billion pound ($7 billion) cash takeover proposal from U.S. private equity firm JC Flowers, saying it “significantly undervalues” the firm. Friends said it received the offer last Thursday and Flowers had indicated the price would be reduced if Friends Provident went ahead with its 2007 final dividend. Friends said the proposal “does not represent a basis for discussion”.

Barry Diller has come out of the courtroom victorious against fellow billionaire media mogul John Malone. Diller, the chief of IAC/InterActiveCorp, can now start to spin off four of its largest units. Malone’s Liberty Media had been trying to oust Diller, the chairman and chief executive, and six other IAC board members. Now the two must return to the table and either work through the contentious spin-off or agree to swap IAC assets for Liberty’s stake in the company.

Dubai International Capital and private-equity firm Bridgepoint plan to bid about 700 million pounds ($1.4 billion) for healthcare group Euromedic International, according to the London Times. It said UBS has been hired to advise on an approach for the Warburg Pincus-owned firm.

China’s Ping An Insurance wants to raise its stake in Fortis to 7 percent, according to the Belgian-Dutch financial group’s annual report. China’s second-largest life insurer recently lifted its stake in Fortis to just under 5 percent from closer to 4 percent and bought half of Fortis’ asset management business for 2.15 billion euros ($3.4 billion). “Ping An has declared that it ultimately wishes to obtain a 7 percent shareholding in Fortis, and Fortis has stated that it intends to explore possible means to that end,” Fortis said in its annual report.

Man Group, the world’s largest listed hedge fund company, said it would buy half of U.S. credit specialist fund manager Ore Hill for $195 million in cash and will issue $40 million worth of new shares to help finance the deal. Ore Hill has about $3 billion in funds under management.

Deals of the day:
* China Telecom, the larger of the country’s two fixed-line service providers, has agreed to pay 5.557 billion yuan ($792.3 million) for Beijing Telecom, a subsidiary of its state parent.
* Australian dairy and juice producer National Foods, owned by Japanese brewer Kirin Holdings, has lodged an indicative offer for milk and cheese producer Dairy Farmers, a source familiar with the situation said.
* Credit Suisse said it would become an investor in Australian share trading platform AXE ECN, set up to rival market leader ASX, joining six other shareholders.
* Vega, a wholly owned subsidiary of The HSBC Private Equity Fund 6, is offering to buy Singapore-listed apparel maker Sing Lun Holdings for S$119.6 million ($87 million).
* Billionaire Australian investor Solomon Lew offered to buy clothing retailer Just Group, valuing it at up to A$898 million ($824 million) and sending its shares up as much as 12 percent.
* South Korea’s Kookmin Bank said it would sell its 14 percent stake in Bank Internasional Indonesia (BII) to Malayan Banking for $378 million.