LVMH, PPR Settle Dispute Over Gucci Ownership
This article was originally published in The Rose Sheet
Executive Summary
Luxury goods manufacturers LVMH and Pinault-Printemps-Redoute and fashion house Gucci reached an agreement Sept. 10 settling a long-running dispute over Gucci's partnership with its parent, PPR, the three firms said.
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LVMH v. Gucci
Dutch Securities Board grants approval to LVMH, Pinault-Pritemps-Redoute and Gucci to move forward with agreement to settle series of lawsuits filed in Amsterdam courts regarding Gucci's partnership with parent PPR. Settlement will provide minority-owner LVMH with significant capital gain while giving PPR 53.2% majority ownership (1"The Rose Sheet" Sept. 17, p. 5)
LVMH v. Gucci
Dutch Securities Board grants approval to LVMH, Pinault-Pritemps-Redoute and Gucci to move forward with agreement to settle series of lawsuits filed in Amsterdam courts regarding Gucci's partnership with parent PPR. Settlement will provide minority-owner LVMH with significant capital gain while giving PPR 53.2% majority ownership (1"The Rose Sheet" Sept. 17, p. 5)
LVMH v. Gucci
Fashion house Gucci and parent Pinault-Printemps-Redoute will appeal to Dutch Supreme Court following March 8 ruling of Enterprise Chamber of the Amsterdam Court of Appeals in favor of LVMH, firm announces March 29. Amsterdam appellate court ordered full investigation into Gucci's partnership with PPR before reaching a final decision on the transaction. LVMH, which is requesting PPR either launch a full bid for Gucci or cancel deal, says Gucci's decision to appeal demonstrates company's "desperation in the face of mismanagement." Investigation expected to last six months. Move is latest in appeals battle after Amsterdam court rejected LVMH's case against Gucci May 27, 1999 (1"The Rose Sheet" June 14, 1999, In Brief). LVMH alleged PPR acquired 42% of Gucci without shareholder approval, a contention PPR and Gucci contest. LVMH is major Gucci shareholder, owning approximately 34% of capital