Luxury goods group LVMH Moët Hennessy-Louis Vuitton has denied it is in negotiations to sell wines and spirits division Moët Hennessy.

A report in the Daily Telegraph newspaper suggested that liquor company Diageo was considering a €12bn ($15.5bn) takeover of LVMH’s drinks arm, which includes brands such as Dom Pérignon, Moët & Chandon, Krug and Veuve Clicquot champagnes, Hennessy cognac and Glenmorangie Scotch whisky.

Diageo’s links with LVMH go back 22 years, when Guinness – one of the groups which went to create Diageo – struck up a joint venture.

Only a dozen years ago LVMH Chairman Bernard Arnault tried to join his drinks brands with Diageo’s and give him a key controlling hand.

The result of the 22-year linkup is that Diageo holds 34 percent of Moet Hennessy, but at current spirit company valuations it could cost Diageo over 10 billion euros ($12.9 billion) to buy out Arnault and give the Frenchman cash to expand his fashion empire.

However, a spokesman for LVMH said: “LVMH formally denies British press reports that it is negotiating the sale of Moët Hennessy.”

Mr Arnault, who is known as the undisputed king of luxury goods, lost $9bn last year as LVMH shares dropped 29pc.

He fell from being the world’s 13th biggest billionaire to the 17th in the latest Forbes rich list with his worth estimated at $16.5bn.

Source: DFN / Reuters