Arnault set to talk with spirits groups
Wednesday 02 July 1997
Guinness, which has a 34 per cent stake in LVMH's Moet Hennessy drinks division, and Grand Metropolitan believe that a merger would be in the general interests of their shareholders and are determined to push the deal through.
But LVHM, which is the largest shareholder in both Guinness and GrandMet, wants to break up the deal. Instead Mr Arnault wants to broker a merger of Moet Hennessy with the IDV and United Distillers, the respective spirits divisions of GrandMet and Guinness. Neither party seemed willing to compromise yesterday and both believed the other should take the lead in the negotiations.
It is thought that GrandMet and Guinness would be prepared to give Mr Arnault an equity stake in the combined spirits business providing the Guinness and GrandMet merger goes through. But LVHM is understood to have ruled out such a proposal. Mr Arnault is also unwilling to sell LVMH's 66 per cent stake in Moet Hennessy to Guinness.
Mr Arnault has spent pounds 800m buying a 6.4 per cent stake in GrandMet over the last month in an apparent attempt to increase his bargaining power at the negotiating table. But he needs 25 per cent of GrandMet's shares to block the merger.
If the talks fail the fate of the merger will then be in the hands of the French courts. Mr Arnault believes the Guinness-GrandMet merger signifies a change of control of Guinness and triggers a pre-emptive right by LVHM to buy back the UK's company's minority shareholding in Moet Hennessy and it lucrative drinks distribution contracts around the world.
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Bill Cosby: Isn’t it obvious why his accusers have stayed silent up until now?
- 4 Halle Berry takes ex-boyfriend Gabriel Aubry to court for allegedly trying to make daughter look less African-American
- 5 Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ferguson decision: Tea Party website mocks Michael Brown's family over T-shirt typo
Michael Brown shooting: Ten things we know – or know better – now the Ferguson grand jury's work is over
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Derren Brown on the disappointment of coming out: 'It’s not that people react badly to it – they really don't care'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£Attractive: Citifocus Ltd: High calibre individual with significant product d...
£Negotiable: Citifocus Ltd: Leading global bank seeks experienced credit analy...
£Attractive Package: Citifocus Ltd: High calibre individual with a high degree...
£Attractive: Citifocus Ltd: High calibre individual with superior academics an...