Bermuda-based Bacardi Ltd. is close to a deal to buy the Grey Goose high-end vodka business for more than $2 billion, according to a story in yesterday?s Wall Street Journal.

The story said the move would ?significantly? broaden Bacardi?s presence in the US spirits business. Bacardi this week announced its net earnings fell 20 percent last year (see related story).

The Wall Street Journal said financial and legal details were yet to be finalised, and the deal could still fall apart.

?Nonetheless, the talks were in advanced stages, and an announcement could come within days,? the story said.

Grey Goose is made by Sidney Frank Importing Co., of New Rochelle, New York, a closely held concern which imports top-selling German liqueur Jagermeister. The company is controlled by Sidney Frank, its chairman and chief executive, who is in his 80s.

Bacardi now has roughly eight percent market share of the US spirits market, but is currently dwarfed by spirits leader Diageo Plc, which has nearly a quarter of the market.

Grey Goose currently sells roughly 1.8 million cases in the US market, accounting for about half of super-premium vodka sales. It retails for nearly $30 in some parts of the country, well above the price of Absolut, a leading imported vodka.

A spokeswoman for Sidney Frank Importing told CBS MarketWatch yesterday that she could not comment on the Journal story but added that there may be news released today .

A Bacardi spokeswoman told MarketWatch that the story was ?speculative?, but added that the company is always looking for opportunities to expand its product portfolio.

Bacardi already distributes high-end Turi vodka from Estonia. In addition to its rums, it also owns the Dewar?s Scotch whiskey, Bombay gin and Martini & Rossi vermouth brands.

In May, 2003, Bacardi shareholders voted to create a new class of stock that cleared the way for a possible initial public offering. Most shareholders are members of the company?s founding family, and it would take another vote by them for Bacardi to actually go public.