Diageo is considering launching a bid for some of the world's oldest champagne labels, including Moët & Chandon, Krug and Dom Pérignon, according to press reports.

The iconic brands could become British-owned under a tentative plan for a €12bn (£10.6bn) bid by Diageo for the wine and spirits arm of French luxury goods company LVMH, according to the Daily Telegraph.

Bankers have been working on the plans for some weeks, the paper said, citing executives close to the situation. They cautioned, however, that talks were still at a very early stage and no official approach had been made to LVMH.

Diageo may yet decide not to table a bid.