Turn Every Ally Into a Stepping Stone

“The head of Louis Vuitton and the head of Financière Agache sign a six-point protocol to jointly take control of LVMH. The document exists in only two copies and has only four pages. Each term has been weighed. It states in the preamble that "given the project under way to introduce a foreign shareholder to a significant extent into the capital of LVMH, a project carrying a very great danger in the long term for the unity and integrity of the company, Messrs. Racamier and Oligastro have deemed it necessary, for the protection of the company and its shareholders, especially the Vuitton family, to approach the Arnault group... The intention of the two parties is to maintain the LVMH group's belonging to the typically French domain of high quality and prestige, as well as to protect it against the risks of dismantling2”

“His most difficult appointment takes place in the evening, during a dinner with Anthony Tennant. The dispute between the two men is considerable. Tennant was on the verge of betraying Arnault in recent days. Each of them, one after the other, had solo purchased LVMH shares, in violation of their agreements that bind them within Jacques Rober. For this, Tennant had even threatened Arnault with legal action by letter. And Arnault, for his part, had stopped the last attack by brandishing the accusation of insider trading to the administrators. The dinner continues until 5 am, in the small light of dawn: unheard of for an early riser like Arnault! This shows the importance, for him, of this negotiation. The agreement finally reached provides that Guinness will increase its stake in Jacques Rober from 40 to 45% and will have a seat on the LVMH board. A masterstroke: Arnault secures an additional 5% of his financing without losing an ounce of his power.”