British drinks giants Guinness and Grand Metropolitan hope to receive US approval for their mega-merger within two weeks and float the world's biggest spirit producer on schedule on December 17th. "We intend to merge the two companies on December 17th, so clearly we are working towards agreement with the FTC (US regulators) before that date," a spokesman said.

He dismissed as "absolute speculation" press reports which said that Guinness was prepared to drop its Dewars whisky brand and that GrandMet would sell its Bombay Sapphire gin label in an attempt to sweeten the US authorities. Guinness said that it was constrained to confidentiality during its negotiations with the US authorities. But drinks industry sources believe that it is almost a foregone conclusion that Dewars will have to be sold by Guinness, with Allied Domecq, Seagrams and Bacardi seen as front-runners in the bidding for the Scotch whisky brand.

The planned merger to create a vast spirits empire named Diageo has already won clearance from the European Commission, in return for disposal of some spirits brands in various countries across Europe. Diageo, which will have annual sales of £13 billion, will be the world's biggest spirits group, encompassing brands such as Smirnoff vodka, Johnnie Walker and JB whiskies.