The battle over the future of Guinness and Grand Metropolitan intensified yesterday, as they rejected plans for their break-up from French group LVMH.

The proposals are the latest salvo in a war that begun in May, when Guinness and GrandMet outlined plans for a £24 billion merger.

Yesterday, LVMH chief, Mr Bernard Arnault, was accused by Guinness and GrandMet of trying to gain "back door control" of what would be the world's largest spirits company.