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Article: Guinness buying 34% of LVMH wine, spirits. (LVMH Moet Hennessy Louis Vuitton)
- Article from:
- WWD
- Article date:
- January 21, 1994
- Author:
CopyrightCOPYRIGHT 1994 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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PARIS -- Guiness PLC is set to buy a 34 percent stake in the wine and spirits business of LVMH Moet Hennessy Louis Vuitton in a complicated deal that will significantly reinforce Bernard Arnault's control of the French luxury goods giant.
At the same time, Guinness will sell Arnault-controlled companies the 24 percent it indirectly owns in LVMH.
In Paris, shares in LVMH tumbled 3.5 percent to 3,800 francs ($645) in reaction to the deal, while on the London Stock Exchange, Guinness shares rose 49 pence (73 cents), closing at 5.21 pounds ($7.76).
Under the terms of the deal, Guinness will pay 8 billion francs ($1.356 billion) for the one-third ...