HedgeFundLIVE.com — Moet Henessy Louis Vuitton (LVMH) announced today that it has acquired a majority stake in Bulgari. The Bulgari family which was the majority shareholder in the eponymous company will exchange 152.5 million Bulgari shares for 16.5 million LVMH shares and become the second largest family shareholder with a 3% stake.
Paolo and Nicola Bulgari will stay on as Chairman and Vice Chairman of the company and will have the opportunity to appoint 2 new members to the LVMH board of directors. Bulgari’s CEO will be tapped to manage LVMH’s watches and jewelry division later this year.
Bulgari is just the latest in Bernard Arnault, the LVMH CEO’s, growing stable of luxury brands that already includes Dom Perignon, Marc Jacobs, Fendi and Tag Heuer. This move played out quite differently from Arnault’s surreptitious acquisition of a 20% stake in the Hermes family’s closely-held Hermes International. The Hermes family has gone to unnecessary lengths to ensure their company’s independence from LVMH.
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