Arnault airs fresh merger ideas
Thursday 03 July 1997
Mr Arnault, who is objecting to the straight pounds 23bn merger planned between the two UK companies, wants to form an independently quoted company comprising the drinks operations of LVMH, GrandMet, and Guinness.
However, the new plan looks set to be rejected by GrandMet and Guinness, despite Mr Arnault conceding some ground from his original proposals, which would have involved all three companies owning stakes in a demerged but unquoted drinks giant.
A spokesman for LVMH, which owns the Moet Hennessy drinks group, claimed that "Guinness and GrandMet have agreed to study our proposals ... this is a step in the right direction".
A statement released on behalf of Tony Greener and George Bull, respective chairmen of Guinness and GrandMet who both attended yesterday's meeting, was less optimistic. "We made it clear to Mr Arnault that we are, of course, open to any proposals provided they create additional value for our shareholders beyond our existing proposal, and that this is fairly shared between them," the statement said.
Drinks analysts believe that Mr Arnault is hoping to swap LVMH's 66 per cent stake in Moet Hennessy along with his substantial shareholdings in Guinness and GrandMet for up to a 40 per cent stake in the combined spirits group. And at the same time, they believe he has made it clear that he was unwilling to sell LVMH's 66 per cent stake in Moet Hennessy at any price.
If the two UK companies reject Mr Arnault's proposals and talks between the two sides break down then LVMH will continue its legal battle to acquire Guinness's 34 per cent stake in Moet Hennessy. It claims the GrandMet- Guinness merger signifies a change of control of Guinness and gives it a pre-emptive right to buy back the minority shareholding.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 3 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 4 UK weather: 'Coldest night of the year' tonight as freezing temperatures plummet to -10C
- 5 Game of Thrones is most-pirated TV show of 2014
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...