This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Cheval Blanc deal reignites City speculation
News that LVMH has bought a 50% stake in Château Cheval Blanc has sent the French conglomerate’s share price rising and reignited speculation it could sell its Moet-Hennessy business to Diageo, who already have a share of the drinks division.
As Andrew Morgan, Diageo Europe’s president told the drinks business in an interview, “Obviously we own 34% of Moet-Hennessy and if ever the rest of that business were for sale, you should certainly assume we would be an interested party.”
LVMH has acquired 50% of private company Cheval Blanc, as well as 50% of Château La Tour du Pin.
The stakes were bought from Groupe Arnault, the holding company of LVMH’s chairman and controlling shareholder Bernard Arnault, who purchased the properties with Belgian businessman Albert Frère, initially purchasing Cheval Blanc in 1998 for a reported €155 million.
No financial details of the latest transaction were provided.
The deal has re-instated rumours that the luxury group might off-load its Moet-Hennessy division to Diageo. Despite LVMH’s repeated denial it is planning to sell, speculation has sent its share price rising, which ended last week up 3.2% at €65.62.
Patrick Schmitt, 20.08.2009