The chairman of Diageo has doubled his stake in the drinks group, while the company also bought some more shares for cancellation.

Lord Blyth of Rowington yesterday bought 50,000 shares in Diageo for almost £355,000. The purchase, priced at 709p per share brings Lord Blyth's holding in the company to 95,837 shares.

Diageo also purchased another 700,000 ordinary shares for cancellation yesterday. The transaction, through Cazenove & Co., valued the shares at 687.449p per share.