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Article: Shaken and stirred. (how a proposed merger between Guinness and Grand Metropolitan affects Bernard Arnault and LVMH, a French brewing company)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- May 31, 1997
CopyrightCOPYRIGHT 1997 Economist Newspaper Ltd. 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
BERNARD ARNAULT is just the man to ruin your evening. Guinness and Grand Metropolitan, two British drinks firms, thought that by eloping they had outmanoeuvred the head of France's LVMH, which has had a decade-long series of joint ventures with Guinness. The merger announced in the teeth of Mr Arnault's opposition on May 12th looked sure to relegate LVMH to junior partner. But Mr Arnault prefers his power undiluted. On May 28th, he said that the all-British deal breaks an agreement with Guinness. If it goes ahead, LVMH has the right to buy Guinness's share of their joint ventures for a song.
LVMH's case centres on whether the British merger triggers what ...