Some 600 family shareholders of Bacardi will vote next month in Bermuda on granting authority to issue more shares, it was reported yesterday.

It could mark the first step towards an initial public offering of the world's fourth-largest spirits group, according to the Financial Times.

This will be the first time in recent history the group's family shareholders have voted on a possible capital increase at the 141-year-old company.

A IPO proposal 1999 never went to a vote through insufficient support.

The vote will take place at a special meeting on May 6 at the company's headquarters in Hamilton, and must be carried by a two-thirds majority of all shareholders, not just those voting.

That could be difficult, reported the Financial Times, given Bacardi's often fractious shareholder base.

A further shareholder vote and board approval must follow before any shares can be issued.

That could be either through an IPO or a private issue.If it did proceed with a public offering, analysts believe Bacardi could be valued at above $7bn.

By taking the initial step with shareholders, Ruben Rodriguez, chairman, aims to ensure Bacardi has sufficient financial flexibility to pursue an acquisition and take part in industry consolidation.

Any changes in Bacardi's capital structure are likely to be followed closely by rivals and potential suitors.

Philip Bowman, chief executive of Allied Domecq - world number two spirits group after Diageo - is known to be an admirer of Bacardi. Analysts have also speculated on a tie-up between Bacardi and Brown-Forman, the Jack Daniels distiller.

Mr Rodriguez has prepared the ground carefully for next month's meeting.

He wrote to shareholders last autumn telling them of the need to maintain financial flexibility.

In January he met shareholders in Miami during which various options were discussed.

Bacardi has denied any current plans for an IPO, or having appointed banks to examine such a move.

But Mr Rodriguez told the Miami Herald earlier this year it was "in the company's best interest to have the flexibility in its financial structure to do private or public deals".

Tom Pirko, president of Bevmark, an industry consultant, said Mr Rodriguez had worked hard to change Bacardi's culture.

"It's a very different, consolidated world now. If Bacardi can't raise money they run the risk of being left in a weakened position."