LVMH may sell Krug, Moet and Dom Pérignon to Diageo
- Wednesday 22 April 2009
According to press reports, LVMH (Moët Hennessy Louis Vuitton) approached Diageo to propose a sale which would bring the world's oldest Champagne houses under British control, alongside brands such as Guinness, Johnnie Walker and Smirnoff.
Diageo is considering making a cash offer of €12bn (£10.6bn) to the world's largest luxury goods conglomerate chaired by Bernard Arnault, who is in turn its largest shareholder.
Neither LVMH and Diageo, nor their respective advisors - said to be Goldman Sachs and Lazard - are talking publicly.
London-based Diageo already has a 34% share in Moët Hennessy.
In addition to his stake via shareholding of LVMH wine brands including Chateau d'Yquem, Arnault is himself co-owner of Bordeaux Chateaux Cheval Blanc, La Tour du Pin and Quinault.
The closing share prices for both LVMH (€53/£48) and Diageo (£7.90) were both down slightly on 22 April.