LVMH, Moet, Hennessy, Louis Vuitton, chairman Bernard Arnault flew back to Paris yesterday after meeting with three to four major shareholders in Guinness and

Grand Metropolitan to reiterate his plans for a three-way merger of the firms.

The French luxury goods to spirits company also said in a statement released in London that its plans for such a merger would lead to further cost savings of

£65 million pounds over and above what the British companies identified in their own two-way merger plan.

LVMH did not disclose which shareholders Mr Arnault visited yesterday, but major shareholders in Grand Met and Guinness include fund managers PDFM, the

Prudential and BGI. Mr Arnault is expected to return to London next week to meet with other shareholders.

Guinness and Grand Met had said that their planned £24 billion pound merger into GMG Brands, the biggest in British corporate history, would result in annual cost savings of £175 million.

Mr Arnault wants to merge his company's Moet Hennessy cognac and champagne business with the spirits arms of Guinness and Grand Met, setting up a company worth over 60 billion francs (£6.6 billion) in sales. He wants the merged company to be floated in Paris and London.

LVMH is the largest shareholder in both British firms and now holds 11.06 per cent of Grand Met after buying more on Tuesday in frenetic turnover while reducing its stake in Guinness to hold 12.3 per cent.

The stakes which Mr Arnault holds allow him to call extraordinary meetings of both firms and give him extra leverage in Grand Met, which needs a higher percentage of shareholders to vote in favour of the merger than does Guinness.

Guinness and Grand Met have said they will respond to Arnault's 18-page proposal, although no timetable has been set.

Industry sources said it could be early next week when the two British drinks giants reply.