LVMH Can't Hold Their Liquor?

"News of a potential sale of the liquor division of LVMH has the luxury business world buzzing. A report in the Telegraph says that spirits giant Diageo has tendered a 12 billion euro offer for LVMH's two-thirds stake in Moet Hennessy and that Diageo has set about raising capital with bankers working behind the scenes for several weeks.

The Financial Times asserts that Diageo has not made an unsolicited offer for Moët Hennessy but might be willing to buy if both parties could agree on a price. So far the talks appear to be more theoretical than actual because LVMH hasn't decided that they are ready to sell. The potential deal brings up an interesting question, in a softening luxury market which is better to hold onto, fashion brands like Marc Jacobs, Fendi and Louis Vuitton or liquor brands like Glenmorangie whisky, Belevedere and Chopin vodka, and Veuve Clicquot?"

Information Courtesy Of: Luxist.Com

CHRIS LIVE AKA SHAKER SAYS: As a founding member of the world renowned Veuve Crew, this story indubitably piqued my interest. According to some recent reports, the lord of luxury labels, my main man Bernard Arnault, might be considering dropping the "MH" from his L.ouis V.uitton M.oët & H.ennessy empire. Only earlier this month did I feature a story about Mr. Arnault and his extensive portfolio of high society lifestyle (Shout out to Curt@!ns) holdings and, now, there's talk that he could be persuaded to sell the remaining two-thirds stake of his lucrative liquor division to drink brand dynamo Diageo if they can raise the ducketts to do it.

Now, be clear, Moët & Hennessy are hardly dead weight, however, in this recessionary market even the rich guys are having to tighten their billion dollar belts. I mean, LVMH did just acquire Donna Karan International and continues to remain active in several key selective sectors - so, maybe fashion is the future my friends. Shiiiiiiiiit, if Y.O.U. ask me, champagne and fine clothes always go together.