A Long Time In Finance New Year Special: The Guinness Scandal
Jan 2, 2026
Nick Kochan, an investigative journalist and author of The Guinness Affair, dives into the notorious Guinness scandal of the 1980s, revealing how it shattered traditional City norms. He discusses 'Deadly Ernest' Saunders's rise and the machinations behind the share support schemes that manipulated stock prices. Kochan also highlights key players like Ivan Boesky and the scandal's fallout, including arrests and trials, alongside Saunders' miraculous health recovery that shocked many. The conversation underscores the scandal's enduring impact on financial regulation.
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City Culture Broke During The Guinness Bid
- The Guinness takeover exposed a cultural shift from a 'gentlemen's club' City to a win-at-all-costs mentality.
- Nick Kochan argues the affair revealed greed and more colourful, politically connected characters reshaping market behavior.
Distillers: A Stately Target
- Distillers was run like a Scottish club and seen as bid-proof by insiders.
- Ernest Saunders viewed it as an underperforming target ripe for marketing-driven transformation.
Marketing And Distribution Drove The Bid Logic
- Saunders believed Distillers could be vastly improved by modern marketing and distribution.
- The French Moet Hennessy example convinced strategists that big profit gains were achievable through distribution changes.
