LVMH has issued a declaration to keep people from panicking in this time of great need: They are not, we repeat, not selling off the MH part of the company (MH being the boozy part). Last week, speculation ran rampant that the fashion megacompany would stand to earn 12 billion euros from the sale to drinks group Diageo. Imagine, if you will, what that would mean. Moët Hennessy accounts for Veuve Clicquot, Dom Pérignon, and, of course, Moët & Chandon. Champers, people. How the fashion world could go without bubbly is beyond us.
Thankfully, LVMH helped quell things by nipping rumors. Diageo, which already owns 43 percent of Moët Hennessy, is advising the company. An analyst’s report surfaced saying the deal made no “strategic sense.” Well, obviously. Think of all the Champers-free parties we’d be stuck with. And Fashion Week? Oh, the horror of a dry one. And the report pointed out that in order for LVMH to snap up some high-priced properties like, say, Bulgari or Tiffany, selling off wouldn’t work. (Not to mention, now may not be the best time to buy high-end jewelry brands whose sales are down.) But, there was this tantalizing tidbit that came out of left field for us to ponder: What about buying Chanel? Oh, we didn’t know Chanel was for sale. Hmmm. Someone do let us know when those rumors clear.
Report: Moet Hennessy Sale Unlikely[WWD]
LVMH Denies Talks to Sell Moet Hennessy [DealBook/NYT]