A deal would bring Pernod's best-selling Absolut Vodka, the cognac Martell and the whiskey brand Jameson together with Brown-Forman's whiskey range.
The market reacted with mixed appetite when the news was released on Thursday. Brown-Forman's shares rose 10 percent in New York while Pernod fell 6 percent on the Paris Stock Exchange.
Today, the French stock is trading with a sweeter aftertaste - at lunchtime it is up 3 percent.
