GUINNESS chairman, Mr Tony Greener, is off the board of luxury goods group LVMH after his mandate was not renewed, in a move that worsens the relations between Guinness and its large minority shareholder.
The LVMH chairman, Mr Bernard Arnault, told the shareholders meeting that Mr Greener had written to him a week earlier to say he would not attend the a.g.m., after which his mandate was due to expire.
Relations between Guinness and LVMH, onetime allies, have soured since Guinness's decision to merge with Grand Metropolitan against the objections of LVMH, Guinness's largest shareholder with 14 per cent.
LVMH has already threatened to throw a spanner into the works by exercising options to buy Guinness's participations in their joint distribution ventures and in Moet Hennessy, 66 per cent owned by LVMH and 34 per cent by Guinness.
Meanwhile, European Competition Commissioner Mr Karel Van Miert cautiously avoided comment yesterday on the proposed merger but he said he was aware of the problems raised by the deal.
"We have to investigate all the different products related (to the merger). . . We are only at the very beginning on this case, so leave us some time to investigate the case properly," he said.
Pressed to say more about the £23 billion deal, he said: "It's a competition case and only a competition case and it should be dealt with in the framework of the merger regulation, that's exactly what we have in mind. "It is well known, I think, what the problems are, the competition concerns which have been identified. Now the procedure will go ahead, there will be a hearing in a few weeks time and then we will see what comes next," he added.
The deal was filed for approval in the EU on May 16th. The Commission must take a decision around the same time next month on whether to approve it or start a full probe, which could last another four months.
It was not immediately clear whether Mr Van Miert's comments meant the Commission would start full proceedings.
Mr Van Miert has been criticised for prejudging problems with the proposed merger between Boeing and McDonnell Douglas even before the deal was formally submitted for EU regulatory approval.
GrandMet's chairman, Mr George Bull, said earlier this month when the deal was announced, that he was confident of getting regulatory agreement in both the EU and the US.
Canada's drinks and entertainment group Seagram has voiced concerns about the new group's strong hold on the world's spirits markets.
LVMH's board, including new members Mr Albert Frere, Mr Jean Marie Messier and Mr Charles David Powell, met yesterday after the a.g.m.
