>> While Hermes continues to fight off LVMH and Bernard Arnault — on Friday, Hermes CEO Patrick Thomas said of the conglomerate's advances: “If you want to seduce a beautiful woman, you don’t start by raping her from behind” — another luxury brand has become part of the LVMH stable.
In a €3.7 billion ($5.2 billion) deal, LVMH will take a controlling stake in Bulgari, with the Bulgari family trading in its 51 percent share in the brand. In return, they will become the second largest family shareholder in LVMH, after Arnault. Paolo and Nicola Bulgari will remain chairman and vice chairman of the Bulgari board, respectively, and the Bulgari family will get two seats on the board of LVMH as part of the deal.
Arnault has expressed interest over the past decade in adding Bulgari to his portfolio, and the Bulgari family seems pleased, as well. "This is a significant step for our family as well as for Bulgari, occurring at a time of strong revenue growth,” said Bulgari CEO Francesco Trapani. “Our entrance into LVMH will allow Bulgari to reinforce its worldwide growth and to realize noteworthy synergies, in particular in the areas of purchasing and distribution.”