Diageo and MH “What If” Scenario

Dear Client:Speculation on Diageo making a bid for the remaining 66% stake in Moet Hennessy never completely subsided but was again brought to attention on Friday when Britain’s Daily Telegraph reported possible initial talks between MH and Hermes. In order to fund the supposed transaction, LVMH would have to sell its stake in MH. The Telegraph cites Paris-based brokers “who believe Bernard Arnault, the boss of LVMH, has made an approach for the fashion business Hermes. However, the approach is