New Delhi, March 27 -- Shares of Brown-Forman Corp. climbed nearly 7% on Friday, extending previous day's rally sparked by the announcement that Pernod Ricard SA and the owner of Jack Daniel's are in merger discussions.

The French spirits giant, Pernod Ricard, which holds a market valuation of €15.9 billion ($18.3 billion), and the Louisville, Kentucky-based Brown-Forman, valued at $12.3 billion, confirmed in statements that they are exploring a combination.

The proposed transaction includes a substantial stock component, according to Bloomberg.

At 1:55 pm Eastern Time, Brown-Forman's Class B shares were trading at $27.42, up by $1.64, or 6.36%, in New York.

On Thursday, the stock closed 9.6% higher. Despite this recent mo...