• Financial Times, Wednesday, April 22, 2009 10:32 AM

LVMH, part of the French luxury empire controlled by Bernard Arnault, may sell some or all of its two-thirds stake in Moët Hennessy, its wine and spirits business, to partner Diageo, Julie MacIntosh, Neil Hume and Jenny Wiggins report. The story is based on information from someone familiar with the talks, which are characterized as "informal" and "hypothetical."

A sale would free up cash for LVMH, the world's biggest luxury goods group, to spend on purchases in the fashion side of its business. Industry watchers have said luxury goods makers Hermès or Gucci could fit well within LVMH's portfolio, which includes Louis Vuitton, Fendi, Donna Karan and Marc Jacobs.

Moët Hennessy has either created or acquired a handful of well-known brands including Glenmorangie whisky, Belevedere and Chopin vodka, and 10 Cane Rum. It also owns some of the world's best-known champagne brands; Moët & Chandon and Veuve Clicquot account for 34% of its sales.

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