Bacardi will have no problem raising the estimated $5 billion needed to buy the Swedish makers of the world-famous Absolut Vodka brand.

The Bermuda-based company has been in contact with the government of Sweden to express interest in acquiring the state-owned company Vin & Sprit, and is confident that banks will not hesitate to offer hard cash to back any subsequent bid by Bacardi for the vodka maker.

Vin & Sprit has been valued at around $5.7 billion, or possibly a little higher, if the Swedish government were to sell it through a public offering.

There is no likelihood of privately-owned Bacardi, whose 500 shareholders are all family members, seeking an initial public offering (IPO) to raise the necessary finance for the company.

Spokeswoman Patricia Neal said the money would be raised through a bank loan. Bacardi chief executive Andreas Gembler told the London-based Financial Times: “We have absolutely no problem in financing any deal of this size. The banks who have lent money in the past and who are lending money today would be happy to help us in this situation.”

Bacardi is the largest privately-held spirits company in the world and aside from its flagship Bacardi Rum has in its portfolio of brands Martini & Rossi, Dewer’s Scotch whisky and Bombay Sapphire gin.

The increasing popularity of vodka as a drink of choice has not gone unnoticed by the company and it bought the famous Grey Goose vodka brand for $2.3 billion in 2004.

Late last year Bacardi purchased New Zealand spirit company 42 Below, renowned for its premium 42 Below vodkas, for $91 million.

As famous as 42 Below and Grey Goose are in Asia-Pacific and US markets respectively, Bacardi does not yet own a truly global vodka brand. The Absolut name is second only to Diageo’s Smirnoff in terms of repute and world-wide sales. In 2005 some 9.2 million cases of Absolut Vodka were sold.

Ms Neal told The Royal Gazette: “Vodka is the largest spirits category in the world, and Bacardi seeks to fill portfolio gaps. The company does not have a global premium vodka. “Vin & Sprit, especially its flagship brand Absolut, is a perfect fit for Bacardi. Bacardi wants a global premium vodka and to acquire a brand with the international status of Absolut would be terrific. Bacardi has a great desire to maintain Absolut as a Swedish icon.

“Absolut’s history, its heritage, its culture and where it is produced, are all intrinsic to creating the great ‘brand credentials’ that Absolut bestows. Our company has a long and successful history of acquiring and growing brands with a particular respect to each brand’s heritage.

“There are other clear synergies to combining our businesses. Vin & Sprit is strong in Northern Europe and Bacardi is strong in Southern Europe, so they are complementary. A merger between the two would be about seizing natural growth opportunities.”

Bacardi employs 6,000 people word-wide and is being tipped as one of the favoured winners in any bidding battle for Vin & Sprit. The other likely contenders are Diageo, Fortune and Pernod Ricard.

Bacardi’s Mr. Gembler said: “Of the few global brands that are really left to acquire, Vin & Sprit — and in particular Absolut — obviously represents a jewel for a company like ours.”

Sweden’s centre-right government asked its parliament last Friday for permission to privatise Vin & Sprit. A month ago the chief executive of Vin & Sprit said the group was growing strongly as an independent company and warned against rushing into a sale.

Bacardi spokeswoman Ms Neal said: “We would hope that the Swedish government would decide to sell the company as soon as possible.”