Boardroom Power Consolidation by Stealth

"Without executive powers, the brothers seek to monetize their stake. They are approached by Worms Bank, already a shareholder with 10% and wishing to increase its stake. Fair players, they inform Bernard Arnault who also wishes to consolidate his relative majority. Under equal conditions, they agree to give preference to the latter. A negotiation meeting takes place on a Sunday at the office of the chairman Letartre. All four brothers are present, along with two of their wives. A fierce negotiation begins. The brothers value their stake at 600 million francs, equivalent to a value of 1,140 francs per share. Bernard Arnault chokes and stands firm on the figure of 250 francs which they had accepted during the sale of the first 20%. After long hours of discussion, the parties reach an agreement on the price of 760 francs per share, subject to the confirmation of support from Crédit Lyonnais to finance the operation and guarantee the sellers of the payment of the part of the settlement payable over time. The amount of the acquisition is to be paid over three years. Their stake is thus valued at 400 million francs. The four brothers sign the transfer slips for their shares. Confirmation of support from Crédit Lyonnais cannot be given until the following Monday evening at the earliest. The signed deeds and documents are entrusted to Michel Liagre, who will implement them only after receiving and verifying the commitments from Crédit Lyonnais."

"After this operation and some purchases on the stock market, his holding company now owns 36% of the capital, which, together with the self-controlled shares and those held by Peigné de Malines (a subsidiary of SFFAW) and Belle Jardinière, gives him an absolute majority."

"Bernard Arnault can thus perfect his control over the group and definitively sideline the brothers. It is thus the historic banker, Crédit Lyonnais, that intervenes at a time when, ironically, its president, Jean Deflassieux, is about to hand over his seat to Jean-Maxime Lévêque. A person well-acquainted with the case..."

"Bernard Arnault is, of course, questioned about his relations with the Willot brothers in the context of the agreements he has signed. He replies unequivocally that he is in no way the "front man" for the brothers. Contrary to the agreements signed with René Mayer, none of them will have any managerial power. Dior will not be sold to finance the concordat deadlines. The agreement signed is irreversible, the Willot brothers have signed the transfer slips of their titles. The workforce will be reduced from 15,640 to 12,252 without layoffs. He emphasizes the quality of the investors who will participate in the takeover operation alongside him. The direct and deliberate nature of his answers impresses the union representatives, who nevertheless remain very wary."