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Article: Guinness's plan for merger prompts fight with LVMH. (with Grand Metropolitan, LVMH Moet Hennessy Louis Vuitton)(Brief Article)
- Article from:
- WWD
- Article date:
- May 29, 1997
CopyrightCOPYRIGHT 1997 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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LVMH Moet Hennessy Louis Vuitton has started slugging it out with its longtime partner in the drinks business, the U.K. company Guinness.
On Wednesday, LVMH said it would exercise its right to buy out Guinness's shares in the two companies' joint-venture distribution agreements worldwide and that it would purchase the 34 percent stake Guinness owns in Moet Hennessy at a discount. Guinness immediately rejected the proposition.
In a statement issued on the eve of its annual shareholders meeting, set for today, LVMH said that it is entitled to exercise these rights under existing agreements between LVMH and Guinness. LVMH said that when there are changes in ...