LVMH declined to comment yesterday on press reports that Guinness and Grand Metropolitan had made secret overtures to the French luxury goods and drinks group that could open the way to a merger of all three companies.

LVMH has been buying Grand Met shares as part of an effort to block the proposed merger between Grand Met and Guinness in which it holds 14.2 per cent.

So far it has acquired around 6.37 per cent of the capital of Grand Met. LVMH is believed to be planning to keep buying Grand Met stock until it has acquired at least 10 per cent at which point it could call an extraordinary shareholders' meeting.