Crash as Invitation, Not Crisis

“On October 28, the Paris Stock Exchange literally collapses: faced with the massive influx of sell orders at any price, more than half of the 180 main stocks cannot be listed. The LVMH stock is particularly affected. It loses 40% of its value and falls to 1,200 francs, which brings the value of the group to 13 billion francs (2 billion euros). For Racamier and Chevalier, everything has to be redone. The bubble has burst. At current prices, LVMH becomes a target again. Everything is possible once more.”

“For Arnault, on the other hand, the crash is a new stroke of luck. The opportunity is unexpected. Especially since, for months, he has been amassing ammunition. In September, one month before the crash, he put 13% of Conforama's shares on the stock market, which earned him nearly 300 million francs. A little later, it was Arnault and Associates, the head company, that was introduced to the second market. And in November, Financière Agache obtained a long-term credit of more than 800 million francs from a banking consortium led by Crédit Lyonnais. What does Arnault do with this war chest? With the support of Lazard bank, he buys LVMH shares, both personally and through Financière Agache.”