Bernard Arnault

"Arnault knows, however, that he cannot play the game of "my ideas, your money" with financiers for long. Especially if he wants to attack healthy companies. This observation is not an obstacle, however. The miracle solution exists. It's the stock market. Next time, instead of relying on financial support from investors, he will introduce the capital of his various companies to the stock market."

"Here are two entrepreneurs who are also heirs; who have tremendously developed what they inherited, even though Férinel's real estate was in much better condition than Bolloré's papers; who each identified a sleeping beauty (Dior, within the Boussac empire, for Arnault, and Rivaud bank for Bolloré); who followed the advice of the same godfather in the Parisian establishment-Antoine Bernheim-to finance their rise to power; who ensured the construction of their empire through a very unusual blend of entrepreneurial aggression and ability to leverage new financial market instruments; who experienced both failures and windfalls (Gucci for Arnault and Bouygues for Bolloré); who moved into the new century without forgetting how to wield hostility (Hermès and Havas learned this to their detriment); who practiced financial engineering with incredible dexterity-Arnault increased his share of LVMH's capital from 38% to 46% in one day, crushing the Christian Dior holding, while Bolloré reached 27% in Vivendi, thanks in large part to the billions inherited from the opportune merger of the communication group with Havas; and who, finally, share the same dynastic ambition, a fierce determination to firmly establish this resolutely familial choice over time. In fact, it is the defense of family capitalism that is the cause of their joint presence in Lagardère's capital, and the potential source of a collision..."

"All the cousins meet every summer in front of the bay of Canoubiers. In this hideaway, a stone's throw from the Les Parcs residence, which houses the "rich and famous"-Bernard Arnault, Francis Holder (Paul bakeries), Lakshmi Mittal, Mohamed Al-Fayed (Harrods)...-Vincent Bolloré has spread out: around La Pêcherie, his first waterfront villa, next to a slightly rusty boat garage where dinghies are stored, he has taken over all available land so that each of his children has their independence. In the middle of this Bolloré village, a tennis court:"

"There are now two remaining obstacles to overcome to perfect the operation. The first is in the hands of the Competition Directorate in Brussels. If the new Hachette-Editis combination wants to rise to the top spot worldwide, it must not lose too many publishing houses along the way. However, due to Editis' strong position in France, the combination of the two groups exceeds 50% market share in paraschool, dictionaries, paperback books, and tourism. Sacrifices will have to be made. But for victory to be complete, Vincent Bolloré must also recover Bernard Arnault's shares, again without giving up too many assets."

"Bernard Arnault, the French number one, and one of the richest men in the world thanks to the global strength of the fifty brands of LVMH. In reality, their successes rely on very different factors. Arnault focused on the luxury sector, with some forays into his personal portfolio (distribution, technology, private equity, press, etc.)."

"It is a real break, which will change the nature of the company and reverse the balance of power between Bernard Arnault and his father. It marks the abandonment of Ferret Savinel's historical activity, which will now, by contraction, be called Férinel. Change of nature? The thousand employees are now only twenty. Promotion is more financial and more lucrative than industrial construction, where one is at the mercy of one's big clients and where margins are small. One fears the weather, watches the sky, deals with the sites, rubs shoulders with the workers."

"It was while listening to the radio in Nice that Jean Arnault learned that Bernard had bought Le Chasseur français. He was furious. He called him, but in the meantime, his son had gone to the United States. He turned to Michel Lefebvre, who immediately found an excuse for him: everything happened very quickly, Bernard didn't have time. Jean Arnault, once again, bowed down. Thus, facing his father, with the support of his grandmother, knowing how to become indispensable, working hard, masking his game, sheltered behind his appearance of a first communicant, taking risks, analyzing situations far from the fashions of the moment, using emotional strings, mastering power relations, playing three moves ahead with cold determination, Bernard Arnault succeeded in his gradual takeover of power, within the family framework. A pattern that he will reproduce later identically, adapting it to circumstances, and which will allow him, in a few years, to reach the heights of power and fortune."

"However, Bernard Arnault's state of mind is different, as he shares a deep bond with his grandparents. His suffering is not on behalf of someone else. Later, when asked about the most significant and painful events in his life, he will never hesitate to answer: the death of my grandfather in 1959 and that of my grandmother in January 1985. "I see her on her hospital bed, reading articles about me," he confides to Yves Messarovitch in his book."

"Like a spoiled child who only accepts the game's rules if victory is assured, Bernard Arnault cannot stand the intrusion of his capitalist rival, who has snatched the limelight by vying with him for the title of France's richest man."

"Indeed, in 1976, the year of Antoine's birth, his second child, Bernard Arnault convinced his father to sell the industrial buildings and public works sector of the company to Quillery (of the Rothschild group) for 40 million francs and to focus only on real estate promotion and an embryonic activity, the construction of individual houses and apartments, under the name Ferret Savinel MIA."

""I owe her a lot for the choices I made from my early childhood, especially for the unwavering certainty she instilled in me that only hard work paid off," Bernard Arnault will later say."

""My first principle is to never lie, which is also very important in business where transparency is essential, even decisive." Bernard Arnault, The Creative Passion, interviews with Yves Messarovitch."

"From this observation, he draws at least one lesson: only the boss is responsible, he alone decides. And he, Bernard Arnault, will be the boss."

"There had never been any social problems at Ferret Savinel. No strikes, no complaints, nothing. Paternalism worked perfectly there. And then suddenly, the strike. Total. Radical. Led by the CGT delegate, a certain Maquet, who until then had been quite unobtrusive. Bernard Arnault never forgot the image of his father, disoriented at the entrance to the offices, prevented from entering by the unionists, in direct confrontation with them. Bernard watched from afar as this world collapsed, and another was born. He was in Roubaix, still preparing for his exams."

"Bernard Arnault is neither one nor the other. From this point of view, his success is exceptional. It is not among the petit bourgeoisie that great predators are born."

"The takeover became clear when Bernard decided to buy a Piper Cheyenne plane to travel, without asking his father's permission. When Jean learned of this, he was furious. He confronted Bernard: “Why did we buy a plane?” “It was Michel Lefebvre who told me we should buy one because it's convenient and economically justified.” Jean Arnault rushed into Michel Lefebvre's office: “Are you the aviation specialist?” “No, but we thought, with Bernard, that it was a wise investment due to the increase in our turnover and the many trips we have to make throughout France.” Jean Arnault is not convinced: “I need to see you both together, this is not acceptable.” A confrontation is organized on the spot. Jean Arnault speaks, addressing only Michel Lefebvre and never meeting his son's gaze, who stares intensely at him: “Things need to be very clear, and since they don't seem to be for you, I'm going to make it clear. In this company, I am the president and no one else.” “That's obvious, Lefebvre replies.” “Not as obvious as you think. In any case, I forbid you to buy a plane. It's an unnecessary expense. Do you hear me? It's over!” Bernard Arnault said nothing. And the Piper Cheyenne, already ordered, would be delivered a few weeks later..."

"An evolution facilitated by the fact that he becomes a shareholder, thanks to his grandmother, who entrusted him with some of her shares. Close associates also claim that Bernard Arnault played an important role in buying back, a little earlier, at an interesting price, the shares still held by the Ferret family, which allows Savinel and himself to recover the entire capital."

""He made his fortune with public subsidies. Everything is accepted from him. Everything is forgiven him. While I am always pointed at, me who has not done a tenth of what he has done." Question: how can Bernard Arnault, at his age and with his background, dare to make a move like this against Tapie? Is he aware of the risks? Has he not, better than anyone else and before everyone else, identified the personality of the flamboyant businessman who intimidates, attempts coups, content to scare but never to act?"

"As business prospers, Bernard Arnault decides to launch into leisure real estate, mainly vacation homes."

"the Bernard Arnault of the time as a "young know-it-all, quick to talk back." In 1989, when his friend, in the midst of a battle for control of LVMH, was facing criticism from the press denouncing his coldness and insensitivity, Lefebvre even claimed to find him "more relaxed than he was a few years ago.""

"Pierre Godé perfectly measures the decisive role he played in making Bernard Arnault the richest man in France; he was paid accordingly, his own fortune is made, but he knows he will remain a second fiddle, as sharp and brilliant as he may be; Bernard Arnault, symmetrically, knows everything his success owes to Godé and his ego suffers from it."

"Bernard Arnault did not resell Le Chasseur français to Tapie. "What agreement?" he says to him. The intermediary does not remember ever holding such an agreement and Arnault claims that it never existed. Tapie cannot file a complaint since the carry-over agreement, if it ever existed, was illegal given his legal situation. And Arnault will resell Le Chasseur français himself, with a nice profit."

"it is Arnault himself who finds Finial Holdings, a mysterious Lebanese financial company with Syrian capital, a former shareholder of Novotel: it brings in 45 million. The oil groups Elf and Total each contribute 47.5 million francs to the pot, through financial subsidiaries. The British bank Charterhouse leaves a 5-million-franc calling card. Even the Truffaut nurseryman is in on it!"

"But in the spring of 1984, still according to the official version, when Pierre Godé called Bernard Arnault to reveal the name of the target company he had found, he wondered if he had gone crazy. Boussac does not meet any of the criteria he has set. The name is certainly known, but it's for the worst; nobody believes in the development potential of a bankrupt and failing group; as for the workforce, which Arnault wanted to be as small as possible, it approaches 30,000 people. Legitimately agitated employees: to save their jobs, the Boussac regularly go on strike, cut down trees, and block the roads of the Vosges valleys where the factories are concentrated..."

"At the same time, a second project was launched. It was the Royal Forest operation in West Palm Beach, also in Florida. Férinel Incorporated built 115 individual houses there. Bernard Arnault hoped for a margin of $ 6.5 million, but the slippage in interest rates and overhead costs ate it up entirely. The developer claimed to have achieved a net margin of 5%."

"What happened? The Willot family were reportedly informed that if they did not sign with Arnault, the judicial liquidation of their assets would be a foregone conclusion. But how were they allowed to sign this agreement? Various clues already testified to the discreet commitment of the public authorities to Arnault. In particular, the presence of Elf and Total, public and semi-public companies, in his round table. Suddenly, things become more obvious: because of the indictments they were facing, the Willot family did not have free disposal of their shares, which were placed under the double sequestration of the Boussac bankruptcy trustees and the president of the Crédit national. But both have agreed to lift the sequestration. On whose orders? The trustees are under the jurisdiction of the commercial court, which was then under the influence of the State, at least for matters of this importance. As for the president of the Crédit national, he is appointed by the government and takes his orders from it. His decision therefore testifies to the support that Bernard Arnault enjoys at the highest level. Simply because of his good presentation, his polytechnic degree, and his perfect knowledge of the case? This is the most favorable hypothesis."

"According to Bernard Arnault, it was on his own initiative that he would have looked into the Boussac file. From the United States, Arnault would have asked his close associates to clear the way for him to find a new business opportunity that would allow him to relaunch himself in France."

"The Willots are suspicious. But a friendly investment banker, Alain Clarou, urges them to accept. Deputy CEO of Louis Dreyfus Bank, he has the same problem as Worms & Cie: in the spring of 1984, he had some of his clients buy packages of SFFAW shares and panics at the idea of a judicial liquidation that would completely defraud these investors of the last hour, very ill-advised. On October 9th, faced with the threat of liquidation which is to be pronounced on November 16th by the commercial court of Lille, the brothers give in. In the imposing wood-paneled library of the SFFAW, on the ground floor of an old building facing Lille station, they sign a provisional agreement for the sale of their 129,904 shares to Bernard Arnault, who, for the first time, begins to believe in his chances of success."

"In front of his father and Michel Lefebvre, he pretends to be tired and discouraged: “The deal is too risky. There are too many political pitfalls. All this is unmanageable. It's a shame, but I think I'm going to drop it.” Jean Arnault was pleased to see his son in the headlines. He expected him to be triumphant. He can't believe his ears: "You're not thinking of giving up now, are you?" Bernard will easily be convinced not to give up. And Jean Arnault will now support his son without any hesitation."

"Arnault overlooks the role Godé played for him before 1984. "I must say that his help was decisive in building my group [sic] over the past fifteen years," he says, recalling, however: "I was struck by his talent from our first meeting in 1973; the understanding between us was immediate." Bernard Arnault praises his double: "He is also an outstanding confidant and friend [...], there is nothing that can replace having such a talent by your side, in whom I know I can have complete trust.""

"He wants to carry out a capital increase in which the Willots would not subscribe, which would result in their participation falling to a percentage (42%) that would no longer give them a say. The Willots do not want to let go. The situation is blocked. Pierre Godé then pulls out of his civil code an obsolete legal provision: the consumer loan. The new proposal is as follows: the Willots temporarily lend their shares to Bernard Arnault. He then carries out a capital increase, avoids liquidation, pilots the recovery of the company, a recovery from which they will benefit, as minority shareholders, when they have recovered their shares."

"This useless dinner confirmed Bernard Arnault's belief that he should not bow down to the government but present a credible solution that would put an end to years of indecisiveness, absurd appointments, and inept decisions."

"again. On November 14th, they sign a memorandum of understanding with Arnault under which they sell him 20% of their SFFAW shares, at the unit price of 250 francs, or 32 million francs payable in seven years. In addition, they lend him the shares they still have, for one year, until December 15th, 1985, with all the powers attached to them. In exchange, Bernard Arnault undertakes to have the government accept a recovery plan for the group and to present a concordat. To achieve these objectives, he plans to carry out a capital increase of 400 million, from which the Willot family agrees to be excluded."

"On December 14, two days before the government decision, Julien Charlier receives Bernard Arnault at his home on Rue de la Faisanderie. The young man is tired but still determined. He lays his cards on the table: "If you don't agree to become my advisor, I risk losing the game." Charlier is quick to seize the opportunity offered to him. By becoming Boussac's consultant, he will be able to see his competitor's cards before playing his own and he will block the path of his enemy Bidermann. He sets his conditions: a commission of 0.75% on Boussac's turnover (nearly 10 million francs) and the possibility of buying Boussac (if Arnault is a seller) 20% below the price of other offers. The boss of Férinel accepts these exceptional conditions, which he will later remember when he imposes an identical clause on his future partner, Guinness. He now holds the last trump card he was missing."

"In his letter to Fabius, Bernard Arnault commits to respecting the plan he presented to the government, which promises in particular the "perpetuity" of the Boussac group and makes firm commitments on employment. In return, he presents the bill to the State: 940 million, partly (380 million) in the form of debt write-offs, the rest (560 million) in the form of new aid6. The money will be paid, but the promises will not be kept: Bernard Arnault can congratulate himself on returning to France six months earlier. The socialists, those scarecrows, have just given him the best Christmas of his life."

"Bernard Arnault did not wait to become the definitive owner of SFFAW to begin the big cleanup at Boussac. On the very day of his installation as CEO of Compagnie Boussac Saint-Frères on January 2nd, he signed the sale of two factories in Beauvais and Saint-Quentin. These two small units employed 134 people and produced blankets and bedspreads. The buyer was a company created for the occasion, L'Internationale Lainière, led by Gilbert Benattar, Alexandre Saban, and Jean-Yves Delanoë. They paid on credit and received subsidies from Boussac equivalent to 45,000 francs per employee, totaling 6 million. In addition, they received a subsidy of 2.5 million from the Picardy region. Benattar, Saban, and Delanoë were so linked to Boussac that they set up their headquarters at 2 Rue du Pont-Neuf, in one of the group's subsidiaries, La Belle Jardinière."

"Bernard Arnault writes: "I will personally ensure the management of CBSF and will proceed with the implementation of the industrial and social plan as communicated to competent authorities. I will have the assistance of Mr. Julien Charlier who will serve as both my advisor and a member of the CBSF board of directors. Mr. Charlier could only become a corporate officer of CBSF if he ceased to be a corporate officer of DMC. A technical cooperation agreement will be concluded between DMC and CBSF. Finally, Mr. Willot will, of course, not take any part in the management of CBSF and will no longer hold any executive positions within the company or the group.""

"Bernard Arnault wrote to the Prime Minister: "The financial assistance requested from the public authorities will be limited to: the incorporation into the capital of CBSF of the advances from Sopari, up to a limit of 380 million in grants or equivalents; the granting of a loan to CBSF from FDES of 100 million on the best terms. Moreover, I am counting on the support of the public authorities to obtain the participatory loan of 160 million provided for in the financial protocol of June 1982, the payment of which should be made in advance." In return, Bernard Arnault promises the State to make it participate in the profits it could derive from the deal: "The financial assistance granted by the State would benefit to the extent of 300 million from a clause of return to better fortune: they would be reimbursed up to 25% of the dividends distributed annually by SFFAW, or a legal person succeeding it, from the year 1991 included to the year 2005 included.""

"In order not to immediately weaken the person they have chosen, the government agrees to spread out its recoveries (554 million in taxes to be collected) over three years. As for the privileged creditors (social security and banks with guarantees) to whom the Boussac-Willot group owes 955 million, they authorize Arnault to stagger repayments over thirteen years."

"All of this is expensive because the pseudo-industrialists to whom unprofitable factories are sold are not philanthropists. The gravediggers want to be paid. Subsidies, delivery of stocks at lower prices, deferral of repayable claims, etc.: the range of aid is wide. From the outset, Arnault estimated the cost of the sales to be around 250 million francs. Fortunately for him, unfortunately for employees and taxpayers, the money he will use to get rid of loss-making factories comes from the aid granted by the Fabius government."

"Bernard Arnault has won. With a stake of 40 million francs, he becomes the boss of Boussac, which has returned to private ownership and will be worth 8 billion three years later. That same evening, he invites his colleagues to dinner at Laurent, one of the best restaurants in Paris. He is delighted, but does not show it much. Restraint is part of his character. Above all, the agony of his beloved grandmother Savinel, who is dying in Lille, spoils his pleasure."

"If he is suspicious and perfectly organized, Bernard Arnault is also quick. Faced with the Dalton brothers, he decides to play Lucky Luke, the cowboy who shoots faster than his shadow. He will buy the shares held by the Willot brothers. He doesn't have the necessary money? He asks Antoine Bernheim for help, but he backs out: he did not get the approval of Michel David-Weill to commit further. He himself is not very enthusiastic: why spend so much money to recover these useless shares? They are only of interest to Bernard Arnault, in a heritage context. Regardless of Lazard's reluctance! Arnault will turn to Crédit Lyonnais, always ready for adventure."

"If Bernard Arnault has any questions, he doesn't show it. In February 1985, he sold a factory of 140 people in Fécamp that produces women's ready-to-wear under the designer Ted Lapidus's license to the trio Benattar-Saban-Delanoë. The buyers create, for the occasion, a new company, the Union Textile de Normandie (UTN). They still pay on credit and receive 2.8 million francs in aid from Boussac; that is 20,000 francs per employee."

"There was no deception regarding the merchandise. The blindness was collective. Everyone knew about the existence of the jewels, but in the eyes of all, the burden of the textile industry and the weight of excess employees were almost insurmountable obstacles. Only Bernard Arnault, an accomplished rider, lucid and determined, jumped over all the barriers without stumbling."

"year. To reduce staff, Arnault is going to use the method that his predecessor had used: selling off loss-making activities to supposed industrialists with the air of bounty hunters, who will manage as they please. This method is as old as big industry itself. It is the one that will be followed by a group like Alcatel, which in July 2001 announced its intention to sell most of its factories to subcontractors. Its name: outsourcing. A way to free itself from factories, employees, layoffs, and, more generally, all problems. In the case of Boussac, unlike Alcatel, it is not only a matter of entrusting others with deficit activities internally and managing the necessary reduction of staff. It is then a matter of getting rid of activities and factories in a pre-planned plan whose ultimate goal is simply to exit the textile sector."

"On Thursday, December 20th, 1984, Bernard Arnault was appointed as CEO of Compagnie Boussac Saint-Frères."

"These union protests hardly move the authorities. Legislative elections are scheduled for the following March. The government wants to avoid, at all costs, a major disclosure that would demonstrate Arnault's responsibility in resorting to questionable third parties to clean up his group, but also his own incompetence in restructuring a major industrial affair: it was Fabius himself who chose Arnault. Politically, at this moment, their fates are linked."

"Networks of informants are activated within the client companies themselves, as well as in their direct environment: clients, suppliers, banks, etc. There is nothing to suggest that the firms that worked for Bernard Arnault used illegal methods."

"Creditors, for their part, have swallowed their pride. On September 30, 1985, 99.35% of the 3,370 present or represented creditors voted for Bernard Arnault's proposals, which resulted in a debt write-off of nearly 1 billion francs. The amount to be repaid now only amounts to 2.7 billion out of the initial 3.6 billion required. But since the repayment is spread over several years, the discounted value of this sum drops to 1.7 billion."

"Chance will then serve Bernard Arnault. At least that's what he will later claim. According to the official version, one of his friends overheard a conversation on a train where a representative of Worms & Co. revealed to his interlocutor the operation planned behind Arnault's back. In this case, chance is a convenient excuse: it could disguise a very organized intelligence gathering policy that the Arnault group, like many others, will refine over the years, turning it into a veritable weapon of war in the conflict that will later pit him against François Pinault."

"The unions turn to the government to block the sale to the Swedes. And to everyone’s surprise, the right receives their message well. The operation seriously stalls in the ministries, especially in the Ministry of Industry where Alain Madelin becomes angry. Reduced by Chirac and Balladur to a mere figurehead, the minister seizes the opportunity to demand answers from Arnault. He has one of his cabinet members say: "Bernard Arnault has made capital gains on asset sales that were recapitalized by the state and that he is now using in luxury and distribution. Not a penny of the 400 million capital increase he made has gone into textiles.""

"Bernard Arnault, from this time on, calls on specialized firms in what is now called economic intelligence, that is, the search for information, concerning his competitors as well as within his own group."

"It is better to deal with God than with his saints. The Moët-Hennessy clan reacts like Chevalier: since Racamier opened the door to Arnault, they might as well deal directly with him! A royal path thus opens up before the boss of Financière Agache. Especially since David Dautresme recovers 12% of the capital of LVMH, just by making a few phone calls. These securities are, in fact, in the hands of the six investors to whom the OBSA issued by Moët-Hennessy in 1987 had been placed. Since then, these securities have discreetly remained parked in these six parking lots: UAP, Caisse des dépôts, Crédit agricole, Worms Bank, BNP and... Lazard, lead manager of the operation. Dautresme is thus negotiating with these establishments the conditions for the sale of these OBSA to Bernard Arnault. But the sellers must not appear, as it was stipulated that these securities had to be placed in the general public. Also, once the terms of the transaction are agreed upon, they will be invited to go through a discreet Belgian-Luxembourg intermediary, Belmavobel International Securities."

"This document has one merit: it shows that it was Henry Racamier who went to fetch Bernard Arnault. And it gives the latter legitimacy to at least set foot in LVMH, without prejudice to the betrayals and counter-betrayals of others later on. "From the start, I was deceived," Bernard Arnault would later assert. The principles are set: execution will take the form of a friendly takeover bid for 30% of LVMH's capital, as allowed by law at that time. The shares will be purchased by Financière Agache at a price of 3,000 francs and brought to a joint company owned equally by the two allies. The day of the assault is set for Monday, June 27. This takeover bid was concocted by André Battestini of Paribas, who advises Racamier. Lazard is not in on the deal. This crime of high treason (and self-interest) will have serious consequences."

"he sold Peaudouce to Môlnlycke, a subsidiary of the huge paper conglomerate Svenska Cellulosa, for an astronomical price: nearly 2 billion francs (300 million euros). Bernard Arnault summarized this deal succinctly in his book: "We went to Sweden with one of my collaborators to sign the transaction. The night following the official signature, the hotel where we were staying caught fire. We were able to rush down to the hotel lobby in our pajamas with all our files!" The negotiation was remarkable, however. The deal had been on the market for over a year. In October 1986, the English company Smith & Nephew offered 800 million francs. Then, in January 1987, Môlnlycke outbid them with an offer of 1.5 billion francs. Not bad for a company still listed in the books for 300 million! Advised by his collaborator Christophe Mujagic, Arnault asked for 2.5 billion. The Swedes did not want to go beyond 1.7 billion. Finally, they agreed to just under 2 billion. Was it the tenacity of the businessman? Probably. Arnault was able to sell at the top of the stock market cycle. In addition, two years earlier, against the advice of his collaborators, he had decided to increase the prices of diapers to show a flattering financial result. The gamble was risky because if the major competitor Pampers (Procter & Gamble group) had not followed suit, Peaudouce could suddenly have been out of the market."

"Moreover, thanks to his increasingly effective intelligence networks, Bernard Arnault had learned that the CEO of Môlnlycke, after a lackluster career, wanted to make a big deal before retiring."

"Lévêque knows that he will soon be ousted by the returning Socialists. Eager to make a big splash before his departure, he has decided to sponsor the secret alliance between Arnault and Racamier by opening up a first credit line of 2 billion francs to his protégé. He will be able to mobilize more than 5 billion to take 20% of LVMH. In reality, Crédit Lyonnais is offering Bernard Arnault an almost unlimited right of withdrawal that day. Arnault therefore continues his purchases on the stock market, which has the consequence of alarming Chevalier, who still doesn't know where the attack is coming from. On May 31, 100,000 LVMH shares are traded, 98,000 on June 1, 169,000 on June 2, compared to 25,000 under normal circumstances. The group is dancing on a volcano."

"Therefore, Tennant is not in a position to push the bids. Is this a sufficient reason to surrender to Bernard Arnault, hands and feet tied? His only way out: a clause that allows him to exit Jacques Rober by selling his shares to Arnault from July 1, 1991-but at 80% of their stock market value. This means that Arnault will be able to easily borrow to buy back the shares held by Guinness if Tennant wants to sell them. He will have a guaranteed profit."

"On this chilly late morning, the old sly gentleman has just thrown himself into the lion's den. Earlier, just as the board meeting of LVMH was starting, Bernard Arnault had rushed into Béatrice Bongibault's office. She had been hired the day before as the new CEO of Dior. He had told her, "I may not have time to take care of you, because I'm onto something big." Unlike his usual self, he had burst out laughing, a carnivorous laugh."

"them. Thus, through his initiatives, Henry Racamier has created a united front against him. Which Bernard Arnault skillfully takes advantage of to win the game. Because everyone, now, owes him: Chevalier, whose situation he preserves, Moët and Hennessy, whom he saves from marginalization, Guinness, whom he allows to take a significant, albeit indirect, stake in the capital of LVMH. Even Racamier himself, who still believes that their interests, those of luxury, will eventually converge against the camp of wines and spirits. He still sees himself as the indispensable main shareholder."

"The two men go up to the sixth floor to check the press releases that have been prepared. Arnault eliminates without hesitation the one that pays a strong tribute to the previous management in favor of the more sober one, which nevertheless briefly praises Alain Chevalier and Jean-Louis Masurel. Masurel? That's too much for Arnault, who crosses out the sentence with a stroke of a pen: it's not good to come from a prominent family in the north. Arnault hates Masurel, whom he has always perceived as condescending towards him. On the other hand, next to "Bernard Arnault, elected...", he adds: "unanimously". And it will take Racamier's communication services to insist that Arnault finally accept his title of vice-chairman of the executive board in the final press release."

"Article 1 clearly states the purpose of the maneuver: "The two parties have decided to join forces in this operation to achieve a direct and indirect holding of control of LVMH on an equal footing [...]. The Arnault group undertakes not to carry out the operation without the Vuitton group. The Vuitton group, for its part, undertakes to form an alliance with the Arnault group and to help it take a direct or indirect participation of the same level as that of the Vuitton group in the capital of the LVMH company in order to give the Arnault group and its allies a participation in the capital identical to that of the Vuitton group." Article 2 marks the preeminence of Henry Racamier in the tandem: "In the event of a successful operation, it is agreed that Mr. Henry Racamier will be the first representative of the two parties within LVMH and that Mr. Bernard Arnault will succeed him. The terms of this succession, as well as the composition of the supervisory, management and/ or board of directors of the LVMH company and any other joint venture, will be specified later, in a search for parity between the Vuitton group and the Arnault group and in respect of the above preeminence.""

"Commentators, however, unanimously say that Bernard Arnault has temporarily reached his pinnacle, that the young man is there to learn, to rub shoulders with the greats, and that he is settling into a waiting position that could last for several years."

"In private, however, Arnault's language leaves no ambiguity. Is he only interested in Dior perfumes? "We’re going to get thoe whole thing," he explains. And he clarifies his intentions: "We're obviously going to increase our stake. Initially, we'll reach 30%. My goal is to have complete control.""

"Six months were enough. Bernard Arnault had won. Better still: he had closed the door behind him. Because of his hussar-style offensive, the Stock Exchange Operations Commission would now require any buyer of more than 33% of a listed company's shares to launch a takeover bid for at least 66% of the capital, to protect the interests of minority shareholders. No one would be able to conquer a company the value of LVMH without paying the price. Door closed behind him? In France, yes, but not everywhere. Because this regulation does not exist in the Netherlands. This would allow François Pinault, ten years later, to do the same thing to Arnault with Gucci as Arnault had done to Racamier and Chevalier!"

"Bernard Arnault, a minority in votes, facing the Vuitton clan, had no interest in revealing himself. Sitting for the first time alongside his two illustrious partners, he even gives a noticed nod to management: "I trust the men in place. Alain Chevalier retains full latitude to lead the company. You don't change a winning team.""

"If Arnault launched this blitzkrieg, it was to strengthen his hand in view of the general assembly: he now has a stake of 29.4%, not counting the virtual shares that are the OBSA. Problem: his recently purchased shares do not enjoy double voting rights. The Vuitton clan, despite having a smaller share of the capital (nearly 24%), controls 30% of the votes."

"Bernard Arnault flies to his home in the Parcs de Saint-Tropez estate, where he rubs shoulders with François Dalle, the former CEO of L'Oréal, who is about to make a name for himself, personally, in Georges Pébereau's raid against Société Générale, and Albert Frère, a powerful Belgian industrialist turned finance mogul at the head of Bruxelles-Lambert bank, who will become his most loyal supporter. And his only friend in business."

"On RTL radio, Alain de Pracomtal had stated that Bernard Arnault should maintain the stock prices of LVMH so that all shareholders could exit under the same conditions. This was equivalent to requesting a takeover bid that Arnault could not afford. But the new boss is watching closely. He knows the weaknesses of everyone involved and combines the quality of his information with a real sense of persuasion. Pracomtal will quickly change his mind."

"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."

"Henry Racamier, on the other hand, had made an excellent deal. As soon as he saw the stock prices soaring, he sold at the highest point (4,720 francs) 80,000 LVMH shares he held, which brought him 350 million francs. In fact, Racamier indirectly sold his shares to Arnault! It was a clever stock market move since, after the raid, the share price would drop just above 3,000 francs. However, these positions perfectly reflect the attitudes of both men: Racamier is a dilettante, while Arnault, even at that time, was only motivated by the pursuit of power, no matter the cost. The importance of money would come later."

"Arnault proceeded with a capital increase of 7.3 billion for Dior to finance the contribution of LVMH shares. Of this amount, 4 billion were injected by Boussac Saint-Frères, which controlled Dior 100%, 2 billion came immediately from the sale of Peaudouce, and the remaining 2 billion were to be obtained through a later operation that Arnault was not yet willing to reveal. Regardless, the Arnault group ensured that it retained 58% of Dior. This allowed them to raise 3.3 billion on the market, offering 42% of Dior's capital, particularly to French and foreign institutional investors. Bernard Arnault thus completed his financing without losing control of his fashion house, which itself owned the LVMH shares."

"Simple in theory, the operation is actually much more complicated in practice2. In order to maintain control over Le Bon Marché, it is imperative that Arnault strengthens his majority in the company beforehand. How? Le Bon Marché, which is absorbing Conforama, must compensate for this contribution with new shares given to the contributor, namely Financière Agache. The larger the contribution in relation to the absorbing company, the more shares the contributor receives, and therefore the higher their participation in the new company. Thus, the operation is based on the evaluations of Conforama and Le Bon Marché. The former is given a flattering value corresponding to a share price that multiplies profits by 17.5, whereas the norm in the distribution sector is around 13-14. The latter, on the other hand, is not as impressive. Its buildings, which constitute its main asset, are evaluated based on a pessimistic price per square meter of around 20,000 francs, which seems low for the Sèvres-Babylone neighborhood where they are located. According to the expert commissioned by Financière Agache, their total value would be 1.2 billion. However, a few weeks earlier, Bernard Arnault himself had been more optimistic about Le Bon Marché in an interview with Fortune magazine: "The 100,000 square meters of floor space in the 16th arrondissement of Paris are worth at least 2 billion francs." In any case, the chosen method of calculation now allows him to control Le Bon Marché not at 65.53%, but at 89.96%."

"rnault saw potential in Christian Dior, a more attractive company within his group. He believed that he could better convince investors by showcasing the store on Avenue Montaigne. However, there was a problem: Dior was indeed a magical, universally known name, but it was a small business with only 600 million in revenue and 50 million in profits. It was valued at 1 billion at most, which was far from the 7 billion needed. Undeterred, Arnault decided to inflate Dior's value with Jacques Rober's stake in LVMH. As a result, the fashion house became a holding company valued at over 8 billion. For the first time, the prestige of a brand, transformed into a holding company, was used to attract investors."

"LVMH. Bernard Arnault is infuriated by this move. Seeing the head of a subsidiary (even if he is the second-largest shareholder of the group) act in this way is a transgression of all the rules of capitalism, compounded by a personal affront, on which he cannot compromise. The chairman of the LVMH management board will therefore initiate a legal process to remove Racamier from Louis Vuitton by calling for an immediate general meeting of the company. Intoxicated by victory and blinded by resentment, Bernard Arnault has not had the patience to wait a few months for the ordinary general meeting scheduled for June 1989, during which he could have easily dethroned the old man. Instead, his criminal proceedings will only delay the deadline! Arnault has indeed fallen into a trap. He has no other choice but to convene a general meeting to dissolve the management board he has just appointed, himself!"

"Arnault will therefore use the third solution, that of cascading. This involves stacking control companies on top of each other and opening their capital to minority shareholders who wish to be associated with the presumed success. These can be anonymous small investors or clearly identified external partners. He had already practiced this in 1986 when he had to pay cash for the last Willot shares. To find the 400 million francs, he sold a portion of the capital of Arnault et Associés, the former Férinel, his holding company, to Crédit Lyonnais and Duménil-Leblé. The following year, he raised funds by listing 13% of Conforama on the stock market. He brought Guinness in at 40%, then 45%, within Jacques Rober, the shell that now holds the LVMH shares. Of course, the sales are always partial. Bernard Arnault's golden rule is to always retain, under any circumstances, 51% of the capital of his companies to ensure he maintains control."

"With Nan Legeai, former secretary to the head of Asia at Dior, it's a different story. Bernard Arnault had bought Céline, it is said, to give her a job that suited her. Slim, with crimped hair, this American shared with Bernard Arnault at least two passions: numbers and power."

"Bernard Arnault has won. Others in his position would extend a hand to yesterday's adversary to heal the wounds. It is a fundamental law of the business world that the winner spares the loser. But it is a mistake to believe that the exterminating angel is capable of doing so. For him, victory is only complete if he can make his opponents pay."

"Bernard Arnault cannot bear this temporary failure. He suddenly appears helpless. He is shocked, undermined. His eyes sink in, his complexion becomes pale. This anxious man begins to give an obsessive speech."

"He is tasked with touring ministerial offices to instill poison, to show that the new CEO of LVMH's career has many gray areas and that he acts too often on the edge of legality. Cleverly, he also reminds people that Bernard Arnault never returns the favor, which is the worst thing a politician can hear."

"She believed that her job was to convince, Bernard Arnault told her that she had to intimidate first. When she decided to leave, he had an investigation carried out to assess her capacity for harm before paying her contractual compensation."

"From 1986 to 1991, Bernard Arnault developed a logic of power, at the expense of his immediate patrimonial interests. He set up cascades, which give power but dilute money."

""Can we sue a company and ally ourselves with one of its competitors while sitting on its management bodies? No." Jean Couten proposes to immediately exclude André Battestini, Jean-Paul Parayre, and the two censors, representatives of Vuitton, from the LVMH supervisory board and replace them with a Hennessy and a Moët-et-Chandon. Arnault, at the podium, says nothing, but everyone understands that the initiative comes from him."

""The elements gathered and observed on a group of 200 companies reveal, through the repetitive nature of certain operations, the existence of a highly developed system aimed at promoting the growth of the leader's financial and personal wealth [...] to the detriment of minority shareholders." The Gaudino firm continues: "The apprehended principle consists in disadvantaging companies listed on the stock exchange, both by making them bear heavy losses and by depriving them of significant capital gains, to the benefit of other companies in which the leader's interest percentages are the strongest. In this strategy, the total losses recorded would be between 8 and 10 billion francs." A serious accusation. However, it should be noted here that no minority shareholder of Bernard Arnault has ever had him convicted. There has not even been a single complaint from a minority shareholder between 1989 and today11. Not even from Racamier!"

"Bernard Arnault did not buy this great wine to make money but as a personal investment in one of the jewels of French national heritage, a symbol of perfection. A bit like buying a work of art with no direct return expected. Only the grumpy will say that in this case, he could have paid for Château-d'Yquem himself and not have it purchased by LVMH."

"Dividends and stock options are not enough to explain how Bernard Arnault, who owned 3.6% of his group in 1990, now owns around 20%. And how his personal fortune, with an initial investment of 40 million francs, reached 1.9 billion in 1990 and, nine years later, is estimated in various newspapers at nearly 100 billion francs (15 billion euros)."

"It was a decision that Bernard Arnault made alone, despite Robert Léon's reservations. Every Saturday morning, the two men would discuss strategy, deals, and financial arrangements over a cup of coffee that Bernard Arnault hadn't paid for in seven years, as he often forgot his wallet, much like François Mitterrand and many other powerful men."

"The report first analyzes the internal sales of Christian Lacroix and Céline. Christian Lacroix lost money every year from 1988 to 1998. Initially belonging to Financière Agache and La Belle Jardinière, mostly owned by Bernard Arnault, the company became the property of Louis Vuitton from 1993 onwards, which bought this loss-making machine for 80 million francs. "Subsequently, from 1993 to 1998, Louis Vuitton supported Christian Lacroix's losses for a total amount of 270 million francs," says the report, which continues: "The Christian Lacroix operation results in a profit for BSF, a company owned by Mr. Bernard Arnault, through various holdings, to the detriment of minority shareholders of LVMH, a listed company, all for an amount of around 300 million francs.""

"While Bernard Arnault, as we will see, would mobilize intelligence agency Kroll Associates to reveal all the small and big secrets of his opponent, François Pinault, on the other hand, would turn to Antoine Gaudino to uncover and, if possible, make known the practices he supposed to be diabolical of the "exterminating angel.""

"What does he say? He starts with the following observation: Bernard Arnault initially controls LVMH through a cascade of companies. If they were all merged, his final stake would be reduced to 3.6%. "Following various sales and acquisitions of companies, the stakes will change significantly and allow Mr. Bernard Arnault to increase his interest percentage from around 3% in 1988 to 19% in 1998," writes Antoine Gaudino: thus [...] the value of Mr. Bernard Arnault's stake in LVMH has considerably increased over the past ten years, as it has gone from 1.5 to 22 billion francs.""

"On April 29, 1994, the Christian Dior and LVMH shares were sold by Guinness to Financière Agache for 11.7 billion francs, while their stock market value that day was 16.911 billion, representing a loss of more than 5 billion for Guinness! In reality, this loss is only apparent. Guinness received 3.7 billion in cash but also 34% of Moët-Hennessy, until then a 100% subsidiary of LVMH, with an estimated value of 8 billion francs. However, this stake was also "obtained at a significantly undervalued price," asserts the Gaudino report, which, in the absence of accounting documents, establishes an evaluation of Moët-Hennessy by comparing the operating results with those of LVMH and its stock market value. From these calculations, it appears that Guinness benefited from an undervaluation of the price of Moët-Hennessy shares for a total amount of 7 billion francs. "This loss was clearly incurred to the detriment of the minority shareholders of LVMH, who held the sold Moët-Hennessy shares." In other words, by selling its LVMH and Christian Dior shares to Financière Agache below their price on the one hand and, on the other hand, by acquiring LVMH shares of Moët-Hennessy, also undervalued, Guinness would have made a neutral operation, but would have massively enriched Bernard Arnault (shareholder of Financière Agache). This contested operation led to the almost doubling of Christian Dior's interest percentage in LVMH, which rose from 24% to 40.75%."

"Everywhere one goes, wherever one investigates, traces of these extremely complex operations can be found, but they boil down to one obvious fact: Bernard Arnault became a multi-billionaire because he most often came out ahead, personally, in the constant internal sales and purchases of companies, from the top to the bottom of his cascade."

"Could it be by the operation of the Holy Spirit that Bernard Arnault's fortune was multiplied by 200 in ten years? If not, how did he get rich? Pierre Godé's explanation is brief: Bernard Arnault, he says, "made personal operations above LVMH" and "bought shares directly". But where did the money come from? Are the sophisticated structures of the Arnault galaxy in the nineties as clear as Godé claims? Or are they as dark as Gaudino writes?"

"This is one of Arnault's strengths: when the LVMH3 stock falls, when investors doubt, he takes advantage of it to strengthen his personal positions at a good price. And he doesn't hide his game, at least not his optimism about short-term recovery capabilities. In this year 1998, despite the plunge in its stock price, despite the crisis, Bernard Arnault displays his confidence. And he cannot stand to be challenged."

"the contrary, it seems to us that all of Bernard Arnault's genius is precisely in having avoided this risk: he approaches the forbidden zones, taking care not to enter them."

""It is a victory of common sense for the benefit of all shareholders," says George Bull. "In business, one must not be stubborn," acknowledges Bernard Arnault. And he adds that his "pragmatism" led him to choose a "third way." LVMH ends up with 11% of the future Diageo, which it had previously contested. And it will receive another £ 250 million (€ 380 million) in the form of superdividends after their merger. In total, LVMH will receive 5 billion francs, which will allow it to reduce its debt, which reached 29 billion francs (€ 4.42 billion) in 1997."

"This is the moment that Bernard Arnault chose for Vuitton to buy out its minority shareholders2. This operation allowed BM Holding, 100% owned by the Compagnie Financière du Nord, and therefore by Bernard Arnault, to pocket 1.8 billion francs, which would allow him to strengthen his control over LVMH."

"But most importantly, on that same day, Domenico De Sole pulled an incredible rabbit out of his hat. Gucci announced the immediate issuance of 20 million new shares, exclusively reserved for employees, which reduced LVMH's stake from 34.4% to 25.6%! Called ESOP (Employee Stock Ownership Plan), this "employee share ownership plan" is a diabolical invention that uses the inexhaustible resources of Dutch corporate law to prevent LVMH from imposing its views without taking majority control of Gucci. Michel Zaoui, head of mergers and acquisitions in Europe for Morgan Stanley (the advisory bank for Guinness against Bernard Arnault), came up with the idea."

""In the perfume world, Bernard Arnault broke a taboo. The idea that a manufacturer should remain a manufacturer and not compete with its customers.""

"Based on information released by the US stock market authorities, here are some of the startups in which Bernard Arnault has invested through his Dutch companies: 1800 Flowers (online flower-gift retailer); Ashford (cultural products e-commerce site); Boo (clothing e-commerce site); Boxman (online record store); Cryo Networks; Datek Online (online broker); e-Bay (online auctions); e-loan (real estate loans); epo.com (financial site); Firstmark (wireless local loop), in which Groupe Arnault invested $ 120 million; Furniture (office furniture e-commerce site); FusionOne (wireless technology); LeisurePlanet (tourism); Mercata (group buying); Mortgage (loans and credits); MotherNature (health and beauty); Pilinvest; MP3. com (online music); MyFamily.com (community site); Netflix (DVD rental); Oxygen Media (women's internet and TV), in which Groupe Arnault invested $ 122 million; Petopia (pet-related site); PlanetRX (health); VideoNet (interactive internet); Webvan (online grocery)."

"While François Pinault's offices on Boulevard de La Tour-Maubourg (in the former LVMH headquarters) have become a hive of activity, while Kroll is supposed to be monitoring Ford and De Sole like a shadow and reporting everything that is happening at Gucci, Bernard Arnault, for once, knows nothing, is not informed about anything, and has no suspicions. On March 18, he participates in a meeting with financial analysts, during which he reaffirms that he has no intention of launching a takeover bid for the entire capital of Gucci and is completely optimistic about the outcome of his operation."

"Bernard Arnault, La Passion créative, entretiens avec Yves Messarovitch, Plon, 2000. Nadège Forestier et Nazanine Ravaï, Bernard Arnault ou le goût du pouvoir, Olivier Orban, 1990. Pierre-Angel Gay et Caroline Monnot, François Pinault milliardaire, les secrets d’une incroyable fortune, Balland, 1999. Sara Gay Forden, The House of Gucci, a Sensational Story of Murder, Madness, Glamour and Greed, HarperCollins, 2000. Christine Kerdellant, Les Nouveaux Condottieres, dix capitalistes des années Mitterrand, Calmann-Lévy, 1992. Patrick Lamm, Enquête sur l’affaire Boussac, Robert Laffont, 1985. Alexandre de Lur Saluces, La Morale d’Yquem, entretiens avec Jean-Paul Kauffmann, Grasset-Mollat, 1999. Stéphane Marchand, Les Guerres du luxe, Fayard, 2001. Jean-Marie Messier, Mon vrai journal, Balland, 2002. Michel Pinçon et Monique Pinçon-Charlot, Nouveaux patrons, nouvelles dynasties, Calmann-Lévy, 1999. Gisèle Prévost, Voyage au pays du luxe, Le Cherche Midi, 2001. Jean-Michel Quatrepoint, Histoire secrète des dossiers noirs de la gauche, Alain Moreau, 1986. Nazanine Ravaï, La République des vanités, petits et grands secrets du capitalisme français, Grasset, 1997. Hugh Sebag-Montefiore, King of the catwalks, LVMH affair, Chapmans, 1992. Olivier Toscer, Argent public, fortunes privées, Denoël, 2002. Claude Vincent et Philippe Monnin, Guerre du luxe, l’affaire LVMH, François Bourin, 1990."

"This is what happened with Yves Saint Laurent. Pinault had been tempted by luxury diversification for a long time, and the Sanofi Beauté file had been presented to him. After studying it in 1998, he decides not to pursue it, deeming the price too high and, most importantly, lacking the right person to turn the business around. After spending a day at sea in Saint-Tropez on a boat rented by Arnault in July, Pinault makes his decision. He calls the boss of LVMH: "I have decided not to pursue it. I don't have the right people, but you do. I wanted to inform you, Bernard, so that you can do what you want." "François, thank you for letting me know," Arnault responds. This is how LVMH was able to conduct its exclusive negotiation with Sanofi, only to break it off at the last moment. The same thing happened with Château Cheval-Blanc. This first-classed growth of Bordeaux is for sale. All the major potential buyers have, of course, been contacted: Arnault, who controls Château-d'Yquem, Pinault, who owns Château-Latour, as well as Albert Frère, the biggest Belgian fortune, Liliane Bettencourt,"

"In March, the acquisition of 33.3% of Tanneur & Cie, which manufactures leather goods for major brands and also under its own label, is formalized, as is the acquisition of the Italian company Pucci, led by the founder Emilio Pucci's daughter. Marquise Laudomia Pucci di Barsento will continue to be in charge of creation, LVMH promises. In May, Bernard Arnault announces the acquisition of Omas, an Italian company that manufactures high-end pens. "The equivalent of Montblanc," explains Bernard Arnault... whose Italian leaning continues to grow!"

"François Pinault personally took care of setting his own table and that of his wife, Maryvonne. At his table, there were, of course, the friendly presidential couple, Jacques and Bernadette, but also some of his old Breton friends, as well as Ambroise Roux and... Bernard and Hélène Arnault. "The godfather and the peer, the only ones in this assembly who, perhaps along with Albert Frère, he considers capable of competing with him," writes Nazanine Ravaï in La République des vanités. François Pinault and Bernard Arnault "follow each other's every move," she writes."

"B ernard Arnault achieves a particularly lucrative new stock market coup: during the summer of 1998, he bets $ 10 million on e-Bay, the star of American auction sites. It's the jackpot! He has decided to throw himself headlong and personally into the new economy. For this, he will borrow several financial vehicles. In a first phase, for dotcom purchases, mainly in the United States, he will mainly go through Arkaro Holding BV and Markas Holding BV, two companies based in the Netherlands, and Pilinvest SA and Waelinvest SA, two other companies based in Belgium. This relocation allows him to exempt himself from capital gains tax. And he hopes that these gains will be counted in billions... of dollars!"

"Did you say transparency? Bernard Arnault will once again, on May 25, 2000, change the names of his head companies, an unusual practice in large listed groups and which Bernard Tapie, at his beginnings, had made a specialty of to confuse the former shareholders of the companies he took control of. On"

"Jean-Claude Taté, on the other hand, is not offended by this. This good-natured person is one of the few leaders who has had shareholders such as the Willot family, Bernard Arnault, and François Pinault. He believes that all of his successive shareholders have delegated their power to him and have shown respect for his independence. While he considers François Pinault to be much warmer than Bernard Arnault, he has found him to be just as demanding, and he does not complain about it."

"to the smallest detail, as in the televised debate between the two candidates before the second round of the presidential election. But here, there was no debate between the two billionaires: all exchanges were made bilaterally with the game leader. Very quickly, it was J6M who monopolized the conversation. He put forward the round figure of an Arnault exit at $ 100 per share to avoid any penny-pinching discussions and got the two enemies to agree to the principle of a double takeover bid, an incongruity only permitted by the very lax Dutch corporate law. To simplify, a first takeover bid would be launched at a price of $ 100, allowing Bernard Arnault to come out on top, with a solid profit; a second takeover bid would be launched later, allowing other shareholders to exit in turn. The principle of a new meeting to go further was accepted."

"During this negotiation, Bernard Arnault's emissaries made an unusual demand that they posed, for a moment, as a condition for signing the agreement and then as a token of goodwill: they simply asked that François Pinault obtain, from myself or my publisher, the interruption of the writing of this book!"

"To anyone who will listen, Antoine Bernheim always diligently extols the merits of Bernard Arnault, but he cannot hide his bitterness. Since Arnault reached the heights of success and since Bernheim himself was semi-retired due to the clan struggles that tear Lazard apart, Arnault no longer asks him for advice or even gives him a friendly nod. Although he is the vice-president of LVMH, he no longer participates in the gala dinners organized by Arnault. He is no longer invited to Saint-Tropez in the summer. "Gratitude is a disease of dogs that is not transmissible to humans," the old lion sometimes tells his interlocutors, adding: "The only way to maintain good relations with Bernard Arnault is to stay away. You should not be indebted to him.""

"Determination for what? After twenty years during which he has built the world's leading luxury group, what will be his model for the second part of his professional life? Does he see a future like Donald Trump, the American billionaire who is anxious and sensitive, to whom he has often been compared? Will he evolve like Howard Hughes, the brilliant aviator who ended his life cloistered, locked in fear and hatred of others? Or like Marcel Boussac, the man whose empire he inherited, the one he saw as a child from his father's 203, and who accumulated wealth only to lose it all in the evening of his life? At fifty-three, Bernard Arnault offers the example of total success. Decorated, adored, feared, he possesses everything, has everything and everyone at his disposal. But he still lacks the depth, the distance from himself, the tolerance, the relaxation, even the humor that are the hallmark of accomplished men. The exterminating angel still has to learn the taste of others."

"while Bernard Arnault had let it be known that he himself had bought the Bouygues shares through his personal companies (at the top of the cascade), it will appear that LVMH (at the bottom of the cascade) participated massively in the operation."

"Once renegotiated down to 60 million dollars, this contract demonstrates the ease with which the top and bottom of the cascade can sometimes become mixed, where Bernard Arnault is alone and where he is only the leader of a large and diverse group of shareholders who have invested their money in LVMH and have no interest in MP3. LVMH's minority shareholders are entitled to wonder about the relevance of placing 864 million francs (131.7 million euros) of advertising on a website for their company, if not to enhance the investment of its main shareholder on a personal basis. In any case, there is a contradiction, since on one hand Bernard Arnault's interest was for MP3 to continue, while on the other hand LVMH's interest was for it to go bankrupt as quickly as possible, in order to put an end to this costly advertising contract. The total risk of this operation amounts to 1.5 billion francs (228.7 million euros), broken down into 630 million francs in latent losses and 864 million francs in advertising commitments..."

"The Arnault Group operates on the principle of a cash pool, controlled and managed by Financière Agache: all companies, from top to bottom of the hierarchy, contribute funds or withdraw them according to their needs. In 1999, Montaigne Participation et Gestion (MPG), the head company of Bernard Arnault, borrowed 3 billion francs from the cash pool. Markas BV, one of the Dutch companies that holds stakes in Internet companies, received 4.3 billion francs. This blurs the line between different entities, although there is nothing illegal about it since the interest rates paid by one party or the other are the same."

"As if Pinault had the power... It is extravagant that Alain Minc, author and press man, did not immediately reject this incongruous request. It is equally unusual that Bernard Arnault could have momentarily weighed an agreement of this magnitude and this book. This gives an idea of the almost morbid importance he attaches to giving himself a perfect image, without the slightest roughness and above all totally controlled; and that he could imagine that his adversary had the means to interrupt its writing crudely illuminates the idea he has of the independence of the press and publishing."

"Measured reaction. In reality, Bernard Arnault, as usual, showed opportunism. A few months or years earlier, an initiative of this nature against a major international bank would have caused a scandal and disqualified its author. But the debate is raging in the United States, traumatized by the fall of the stock market, about the role of financial analysts, accused of very rarely going against the global interests of the banks that employ them. Is a takeover possible? Bernard Arnault is the first to attempt it in Europe, at the risk of alienating the community of analysts. This attack also has a signaling value. It indicates to the financial community, but also to journalists-and perhaps to ourselves-that he will not let any criticism, judgment, or negative assessment of his management or strategy, not to mention his person, go unanswered. Beyond that, this intimidation operation shows that Bernard Arnault remains sensitive when it comes to Gucci. And that, as soon as his interests are at stake, he has not lost any of his determination."

"holder, the billionaire Bernard Arnault, was passionate about the internet. On his frequent trips to the US, he had seen at first hand the impact this new medium was having on traditional retailers. Like us, he knew it was only a matter of time before the e-tailing craze hit Europe. For almost a year now he had been making small, but lucrative investments in US dot.coms like eBay and Webvan. Helping him scout for deals was Jean-Bernard Tellio, a suave, fast- talking, former curator of the famed Centre Pompidou in Paris. We"

"I could picture the scene. Bernard Arnault, busy running his empire, is handed a list with internet deals that have yet to be closed. At the top is boo. “Why isn’t this done yet?’"

"business. It seemed to me a shortcoming, which we ought to have tackled long before now, that we could have nominees on our board backed by great business names like Bernard Arnault and the Benettons, yet not benefit from their companies’ accumulated knowledge and experience. It would have been fantastic, for example, if the managing director of the LVMH Group, Myron Ullman, with all his hands-on experience, could have sat on our board. But our nominees were mostly ex-bankers in their early thirties who had little practical experience of having run a business."

"felt confident that a solution would be found. However half- hearted the other investors may have been, both Bernard Arnault and the Millennium Fund had shown themselves determined to do what they could to put the company on a satisfactory financial footing. While Millennium had the most to lose financially if boo"

"first reactions soon arrived. At around 10 a.m., I gota call from Jean- Bernard Tellio of LVMH. He was in New York and wanted to meet for lunch. _ Kajsa and I found him in the downstairs restaurant at Barneys. ‘Did you see the article?’ I asked. He nodded cautiously. “Yes. There’s a bit of a problem.’ “What kind of problem?’ ‘Our PR people don’t like the headline,’ he said. He paused for a moment before continuing. “What I should probably have made clear to you is that LVMH isn’t technically an investor in boo.’ I grinned, assuming this was a joke. But his expression didn’t change. ‘The investment in boo was made with Bernard Arnault’s personal money, he went on. ‘It was his private company — Markas Holdings.’ ; This was news to us. We thought we had been dealing with LVMH from the start. Even Tellio’s business card had LVMH written on it. ‘It’s not that we don’t like the article,’ Tellio went on. ‘It’s great. But just try to play down the LVMH bit next time.’"

"The final plunge began on Sunday 14 May. In an article that made our funding plans public for the first time, the Sunday Telegraph reported on a last-minute hitch: ‘One of the two main investors who was expected to inject the vital funds last week 1s said to have stalled, while the other, thought to be Bernard Arnault, the French business- man, is only prepared to put up more cash if others match him. Unless the issue can be resolved this weekend, the group is expected to call in administrators within days.’ Even worse, the piece reported that if boo.com did receive the funding, it was still expected ‘to shed more than half of its 400 staff and close most of its offices around the world’."

""Luxury is really meant to fill the deep-rooted insecurity of the new rich," said Solca, quoted in an article by Bloomberg Business Week dedicated to the emperor of the sector, "the cashmere wolf", Mister LVMH Bernard Arnault."

"Bernard Arnault and the Willot brothers know each other, no more... Apart from their appetite for business and professional curiosity, they have nothing in common. Bernard Arnault is very athletic, a music lover and a confirmed pianist, demonstrating great artistic sensitivity."

"After being appointed president of CBSF, Bernard Arnault takes over the coveted presidency of Christian Dior on March 20, 1985."

"What was done... Without this animal episode, the Louis Vuitton Foundation would probably never have seen the light of day at the Jardin d'Acclimatation because Bernard Arnault would inherit this concession when he took over the Boussac Saint Frères group."

"In a dramatic turn, it is learned in the meantime that Bernard Arnault, CEO of Ferinel, signed an agreement with the brothers on November 14, subject to the cancellation of the previous commitments with CBSF. This new agreement provides a scheme relatively identical to the previous one. Bernard Arnault acquires 20% of the brothers' stake in SFFAW for 32.5 million francs, payable in seven years, interest-free. The remaining 80% are subject to a loan for use which provides him the benefit of a usufruct. The signatory is advised by Dreyfus Bank which has committed to assemble a group of investors likely to contribute 400 million francs in the capital increase of SFFAW."

"• - The Ferinel group, with a turnover of one billion, a major real estate group from the North, specialized in leisure real estate and in the construction of individual houses. Bernard Arnault is already ahead thanks to the agreement that has just been signed with the brothers; • - The Prouvost group, with a turnover of 7 billion, led by Christian Derveloy, the leading European wool group, which benefits from the support of Georges Plescoff, who has already worked on this file at the request of IDI; • - The Bidermann group, with a turnover of 3.4 billion, led by Georges Jollès, who was, it must be remembered, for more than three months, the general manager of CBSF and who therefore knows the dossier perfectly; • - Bernard Tapie, with a turnover of 4 billion, who lets it be known that he is also a candidate to take over the business and announces having the support of banks and investors to close a round of funding, thanks especially to an Arab businessman and American banks."

"Bibliography Four major works Michel BATTIAU, One of the consequences of the restructuring of the textile industry: the birth of the Agache-Willot group, Lille, CERES Nord-Pas-de-Calais. Gérard BÉLORGEY, About Boussac, Memoirs and lessons, 2 vols. Conference given at the Cambacérès Circle, published by Calaméo. Archives available at the National Foundation of Political Sciences. Benoît BOUSSEMART and Jean-Claude Rabier, The Agache-Willot File. A capitalism against the current, Paris, Presses de la Fondation nationale des Sciences politiques, 1983. Patrick LAMM, Investigation on the Boussac affair, Paris, Robert Laffont, 1985. Other information sources Bernard Arnault, The Creative Passion. Interviews with Messarovitch, Paris, Plon, 2000. Michel BATTIAU, The Textile Industries of the Nord-Pas-de-Calais region, Paris, Librairie Honoré Champion, 1976. Alain BOUBLIL, The Uprising of the Seraglio, Paris, Albin Michel, 1990. Dominique COCHART-COSTE and Jean-Paul GRUMETZ, Saint Frères. Paternalism and its memories, Amiens, CEFRESS-Université de Picardie-Jules-Verne, 2007. Jean-Dominique Delaveau, I am Marcel Boussac and I hunt in Mivoisin, Dammary-sur-Loing, Interstices and Editions de l’Écluse, 2009. François Faraut, The History of La Belle Jardinière, Paris, Belin, 1987. Nadège Forestier and Nazanine Pavai, Bernard Arnault, or the Taste for Power, Paris, Olivier Orban, 1990. Christine Kerdellant, The New Condottieri, Paris, Calmann-Lévy, 1992. Marie-France Pochna, Good Morning Mr. Boussac, Paris, Robert Laffont, 1980. Pierre Pouchain, The Masters of the North. From the 19th e century to the present day, Paris, Perrin, 1998. Jean-Michel Quatrepoint, Secret History of the Black Files of the Left, Paris, Alain Moreau, 1987. Nazarine Ravai, The Republic of Vanities, Paris, Grasset, 1997. Airy Routier, The Exterminating Angel, Paris, Albin Michel, 2003."

"A new player has therefore just invited himself to the table of contenders. Bernard Arnault is indeed not known to the general public. He is a rather discreet character, raised in the tradition of the great families of the North. His father, Jean Arnault, leading the Roubaisien building and public works group, Ferret-Savinel, is a recognized and appreciated business leader by his peers."

"Bernard Arnault, after a brilliant academic career, succeeded in the competitive entrance exam for the Ecole des Mines but narrowly missed Polytechnique due to a fracture that handicapped him during the entrance exam."

"• The Ferinel plan is being implemented. It incorporates elements already analyzed by the management and the current team, contained in the three-year plan (1984-1986) and relies on various diagnostics provided by expert firms: A. D. Little, etc. Hughes de Lasteyrie, assistant director of Dreyfus bank supervises its writing, which I actively participate in, along with the financial director and the administrative director of the headquarters, under the vigilant eye and following the indications of Bernard Arnault and Pierre Godé. The Ferinel group thus proposes a sustainable solution to ensure the recovery and permanence of the Agache-Willot group by relying on the prior takeover of SFFAW and by integrating the Compagnie Boussac Saint Frères into the Agache-Willot group: - legally, the agreement signed with Mr. Willot on November 14, 1984 ensures the takeover of SFFAW, resolves the complex legal problems that condition the survival of the Agache-Willot group and allows for the presentation of a concordatory solution; • - On the industrial and social level, the plan includes restructuring measures already presented to the public authorities and currently being implemented; • - On the economic and financial level, a capital increase of 400 million francs for SFFAW is planned, to be carried out by private investors brought in by the Ferinel group and Dreyfus bank. This will be carried out as soon as the concordat is approved."

"The refocused Ferinel group experiences rapid and fruitful development. This success encourages Bernard Arnault to find other playgrounds. He acquires Le Chasseur français which he will resell and which will earn him a dispute with Bernard Tapie. He attempts an incursion into fast food, without success. The arrival of the left in 1981 opened new horizons for him. Charmed by the idea of continuing to practice his profession in a broader and more open market, and discovering new ideas, he decided to go and establish a real estate development subsidiary in the United States himself."

"The Boussac Saint Frères file is one of those. The quality and influence of the Christian Dior brand greatly impressed Bernard Arnault. He would really like to know more... He knows the brothers, who are also from the North, why not meet them? On July 15, 1984, a first meeting takes place in Croix, at Croquet, the name of Jean-Pierre Willot's lavish home. Who will outsmart whom? Bernard Arnault mostly talks about Dior, but it's all or nothing..."

"The brothers know that their case and their fate are no longer in the hands of the Élysée but Matignon, and that, as with other hot issues like steel, papermaking, the government wants to clean house. In the absence of a solution, liquidation could not be excluded. With Bernard Arnault, they have the opportunity to come out on top, and then, maybe arrangements can be made... Thus, on November 14, 1984, an agreement is signed between the brothers and Bernard Arnault."

"Both, in their different capacities, were familiar with the Boussac Saint Frères case that Pierre Godé had already indicated to him as a possible target. François de Combret did not hesitate to encourage Bernard Arnault to approach Antoine Bernheim in Paris, who had in his drawers, among others, this business acquisition file to study. Politically, a new more liberal government had just been appointed. Investment banks have many business acquisition files rich in opportunities for those who know how to seize them."

"• He announces a takeover plan supported by a contribution of one and a half billion francs... excuse me for the little... Speaking of the Ferinel agreement, for him, this choice would betray "the nullity or complicity" of the State, and would amount to letting the group be dismantled to the benefit of an operator who only thinks of doing "real estate." He denounces the volatility of the brothers with the devastating slogan: "an agreement with the Willots is a weather agreement", while knowing that the solution to the BSF case must still go through them... For public authorities, the matter seems settled. They want things to move quickly. Gérard Bélorgey recounts: "One late November evening, on the snow-slush-covered highway between Lille and the coal mining district... I received a phone call from Matignon. Being the CEO of CBSF, and also the president of the subsidiary AUFINEC, which was central to the setup of the 1983 agreement with the Willots, and finally a signatory to various litigations we were forced into to clear the matter, I was indispensable. I was ordered to urgently go to Rue de Varenne to sign all necessary withdrawals so that the agreement sealed between the Willots and Bernard Arnault could be implemented..."

"Michel Lefebvre, CEO of Ferinel, also emphasizes the need for progress in marketing and commercial policy, practices he has successfully implemented to ensure Ferinel's success in the leisure real estate sector. The listeners listen with curiosity to this young 35-year-old Polytechnician, who has just cut his teeth in the United States, full of vigor and fire, and who does not resemble the archetypal establishment bosses. The financial scope of Ferinel is indeed less significant than that of its competitors, but thanks to the sponsorship of Dreyfus Bank and Lazard Bank, Bernard Arnault, advised by Antoine Bernheim, is able to raise a round table of 400 million francs, with Ferinel's participation being only 100 million."

"Bernard Arnault feels the tide turning and pulls a last ace from his sleeve to clinch the deal. His lack of knowledge in the textile industry is undeniably the weak point of his proposal. Julien Charlier, president of OMC, whom he has already met, can change the game if he agrees to be his advisor. An agreement is quickly reached. OMC becomes the textile industrial operator for BSF. An agreement is rapidly signed. Moreover, it is beneficial for both parties as it can help resolve competition issues between the two groups, specifically regarding household linens and clothing and furnishing fabrics. It is more than attractive for OMC, which will receive a royalty of 0.75% of the revenue from the textile activities under contract and will benefit from a right of first refusal and a 10% discount on the sale price of the concerned department."

"For Bernard Arnault, in life, everything can be learned. This initial deficit will quickly be compensated by the arrival of a new management team that will implement modern management methods based on decentralized management by objectives and direct motivation of managers to their results."

"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."

"It's the prospect of endless litigation and the government wants the file cleared of any judicial proceedings. Bernard Arnault has the advantage of having dealt with them and ensured that they are definitely excluded from their business in exchange for a lucrative compensation."

"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."

"Although absent at the time of the presentation of the takeover offers for the group, Bernard Tapie does not admit defeat. At the SFFAW meeting held in Lille on May 24, 1985, he tries to turn the situation to his advantage. His advisor, Claude Colombani, representing a group of "ad hoc" small shareholders and with the hoped-for support of the president of La Belle Jardinière, who holds more than 18% of the capital of SFFAW, intends to oppose the resolutions proposed by Bernard Arnault. With a judicial sleight of hand, Hugues de Lasteyrie, the new general director of the group, manages to have him taken into custody for "attempted extortion of funds and signature," long enough to wrap up the meeting."

"They were also creators and investors. The entire hygiene sector and the Peaudouce and Nana brands were created from scratch by Antoine Willot. This activity allowed for the conversion of a number of textile factories, which would have inevitably been doomed to close. At the time of the brothers' departure, the hygiene business accounted for nearly 40% of BSF's revenue and, thanks to its profitability, Bernard Arnault was able to sell it in 1988 for 1.7 billion francs to a Swedish group... But the financial resources needed to implement their policy were severely lacking."

"Bernard Arnault's strengthened participation in the Agache-Willot group will be housed in his new family holding, Arnault et Associés, in which Crédit Lyonnais will find its place along with other renowned investors."

"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..."

"But he is not yet out of trouble. He also needs to terminate the employment contracts that had been extended to the brothers. Considering that they have been dismissed, they demand their severance pay. After some complications, Bernard Arnault will have to comply with their request. This time, the saloon doors close for good. Lucky Luke has permanently sent the Daltons back to their ranches."

"To achieve this, he benefited from the support of Antoine Bernheim, the all-powerful managing partner of Lazard Bank, during the period from 1967-2005, who carefully watched over his steps as he had done before with Bernard Arnault, Vincent Bolloré, and François Pinault."

"On the floor below, Bernard Arnault houses Financière Agache et Férinel. Further down, a constellation of SMEs spread across four sectors of activity: luxury (Dior, Christian Lacroix, Céline), distribution (Bon Marché, Belle Jardinière, Conforama), industry (Peaudouce, Saint-Frères, Boussac) and finance (Facet, Crédit Financier Lillois) 7."

"It is time to return to France to buy a company. "Find it for me," he tells Pierre Godé. Which one does he want? He has no idea. However, when he goes to Bloomingdale's to buy a blue bathrobe with a red border and a suit, he chooses Dior and thinks: "There is no more beautiful name. In the United States, the president of Dior is better known than the president of the French Republic..." Prophetic."

"much later-, but the operations are going well."

"Bernard Arnault takes his place. Despite his appearance of a young seminarian, he is clearly not there to preach the good word. "I am the boss. From Monday morning, I will be here and I will personally lead the company. You will keep all your functions. There will be no power vacuum.""

"Bernard Arnault only buys 20% of the shares held by the four brothers, which is 105,000 shares (6% of the capital) out of a total of 1.1 million for a unit price of 250 francs payable over seven years, that is, in 1991. In other words, the operation does not cost him anything immediately. The Willot brothers keep 80% of what belonged to them. This allows them to sell later when the price has gone up. But they lend these shares, which they still own, to Bernard Arnault. He can use the voting rights attached to them. With total control of the business, Arnault can negotiate a concordat with Boussac's creditors. Only then will he proceed with a capital increase of 400 million francs, which will allow him to take over the business."

"Chassagnon. Without taking the time to go back to his own office, he rushes to a phone booth on Boulevard Saint-Germain and calls Bernard Arnault, whom he knows to be in the North. He has already talked to him about different cases (syringe factories, toy companies, and even 3 Suisses), mostly companies in difficulty because at the time bankruptcies are numerous, and he believes that Férinel has a team of capable men who can revive a failing company. But what Pierre Godé proposes that day is beyond comprehension: nothing less than... Boussac!"

"Bernard Arnault who doesn't understand him."

"After signing the contract, Arnault began negotiations with private creditors. Is he showing a particular talent or is he benefiting from Boussac's total decrepitude? The fact is that he obtained a concordat under excellent conditions. The privileged creditors (about a third of them) accept a repayment of 100% over three years; the others reduce their due by 40%, and will be paid over eight years."

"In the contract, the state requires that Bernard Arnault take over CBSF4 at the same time as SFFAW. In return, he asks the government to reset the counters. Bernard Arnault makes two financial commitments. On the one hand, he will have a group of investors subscribe to a capital increase in SFFAW. On the other hand, he accepts a clause for a return to better fortune: if the business becomes prosperous again, Boussac will repay 300 million francs between 1990 and 2005."

"At the top of the network, Bernard Arnault places Arnault & Associés, the parent company of the whole (formerly Boussac, now Financière Agache et Férinel). The cornerstone of Bernard Arnault's financial construction, this company is the one that will benefit most from the restructuring carried out within the group. It not only receives dividends from the various subsidiaries of the group, but it is also the main owner of this heterogeneous structure which counts no less than ten companies, most of which are profitable. Arnault & Associés is controlled 60% by the Arnault family, the rest being held by a group of investors (Crédit Lyonnais, Duménil-Leblé, BNP, GAN, Finial...) (see table 1)."

"At the beginning of 1985, Bernard Arnault took stock. Since his visit to the Willot brothers six months ago, he has come a long way. He got what he wanted: the fashion house Dior, the flagship, but also a distribution group (Conforama, Belle Jardinière, and Bon Marché) with interesting real estate assets. He also acquired packaging factories and Peaudouce baby diapers. The downside: a dilapidated textile group."

"His financial talents have allowed him to realize his dreams. All that remains is for him to reveal his effectiveness as an industrialist. He thinks it will be easy. Nothing and no one is in his way anymore. And yet, this Friday the 13th marks the end of quick conquests."

"Dior must embody "the most beautiful thing in the world," Bernard Arnault is convinced of this. So he attacks the symbol: the building on Avenue Montaigne. It will be completely rebuilt, modernized, while keeping the spirit of Christian Dior. On the fourth floor, the president's office and those of his close collaborators overlook a rotunda, the small living room is adorned with a portrait of Christian Dior and a few white flowers, two dining rooms are planned. The entire floor is covered in pearl grey, walls, mouldings, carpets, and decorated with large black and white photos of the new-look era collections. A mixture of coldness, refinement, and supreme elegance..."

"Are not lost businesses those that reserve the biggest surprises and the biggest profits in case of success? It is enough to study them, better than anyone else, and to work on them without leaving anything to chance."

"The young man from Arles was getting impatient at Patou. He had already won the Golden Thimble. His collections were exciting. Pushed by his businessman, Jean-Jacques Picard, he wanted to go further, create ready-to-wear. But Jean de Moüy, the president of Patou, was reluctant, and he didn't pay him well: no more than 25,000 francs per month. Bernard Arnault was interested in this unloved designer. He was seduced during a lunch. He was certain that Christian Lacroix should not be let go. What should he offer him? Dior's ready-to-wear? A house for himself? Arnault studied the costs and followed his intuition: he would launch a great fashion house: Christian Lacroix. To lead it, Paul Audrain. Seventy million francs were put on the table at first, with an investment of 200 to 250 million francs planned over five years."

"The three-year industrial plan established before the Boussac takeover aimed to preserve the "perpetuity of the company and most jobs." The term is vague. In any case, Arnault believes that it did not have any contractual character towards him. How could it have been otherwise? No serious business leader taking over a company in distress would have blindly committed to it."

"Five years for Férinel, two years for Boussac, one year for Lacroix, a few months for Céline... Bernard Arnault is going faster and faster."

"The Lacroix adventure dazzles Bernard Arnault. Forty years after Marcel Boussac, he relives the same adventure: the birth of a fashion house. For the first time, he feels he has accomplished a work. But the president of Dior does not deviate from his path. Incessantly, he pursues his ascent and seizes, that is his technique, the opportunities that come within his reach."

"Carlo De Benedetti, Jean-Luc Lagardère and Vincent Bolloré are closely inspired by it. Bernard Arnault, on the other hand, will go so far as to build a real pyramid. The interest of the system lies in its far-sighted philosophy. From a minimal investment, it will be possible to target much larger targets, while carefully avoiding launching a costly takeover bid."

"Of Bernard Arnault, he simply says: "Believe me, he is very good." The president of Dior, even if he does not always share this mentor's analysis, is very concerned about his appreciation. He is indebted to him. It is Bernheim who transmits to him the secret of the safest, fastest, and cheapest technique for realizing his projects. As a good student, he learns with perhaps excessive zeal."

"Like his grandfather had initiated him into the life of construction sites, Bernheim reveals to him the workings of finance that he masters with Machiavellian perfection."

"When Henry Racamier introduced Bernard Arnault to the representatives of Moët and Hennessy on June 30th, he was obviously unaware of the negotiations between the president of Dior and Chevalier and Guinness. The families were also unaware. The president of Vuitton presented his takeover project which angered the families. They saw it as a betrayal from within, when they had feared an outside raider. They would never forgive him for this and asked Henry Racamier to leave the room. Frédéric Chandon de Briailles and Alain de Pracomtal then drew Bernard Arnault's attention to the dangers of a takeover: "Not only can another group attack us, but our best collaborators may leave us," they told him. Arnault acknowledged the argument. Alain de Pracomtal continued: "Would you see any inconvenience in associating with Guinness, with whom the group has committed itself?" Bernard Arnault was too happy to answer no. In exchange for this agreement that suited him, he asked for a right of first refusal on the shares of the Moët and Hennessy families, that is, on 13% of the capital. And he obtained it. The agreement will be signed at Lazard at the end of July. It does not have the unanimity of the approximately 200 members of the families. About fifteen young "reformers", especially among the Hennessys, think they are being forced. In any case, from now on, they are all linked: if they want to sell their shares, they are required to offer them first to Bernard Arnault. His strategy is starting to pay off. Bernard Arnault has managed to rally everyone to his side in... less than a week. First Racamier, who still relies on him to oust Chevalier. Then Chevalier, who is convinced he has found the necessary support in him to neutralize Racamier. Just like the families, who are now condemned to play with him. Finally Guinness, who has obtained a seat at LVMH thanks to him. A clever move. Everyone thinks they owe him something. No one yet suspects the young man's true intentions. "They will not be able to compromise my plans," he must speculate. He knows he has only strengths in his hand."

"A few rooms on Rue de la Trémoille in Paris served as an office until a small hotel belonging to the Mercier family became available at 30 Avenue Hoche. Alain Chevalier, supported by the families, then decided to build a real headquarters in the image of the new group. A large modern building bringing together Hennessy on the first floor, Moët on the second, Parfums Dior on the fourth and fifth, financial services on the sixth, the General Directorate on the seventh, and on the eighth, two dining rooms with lacquer and orchid decor overlooking the rooftops of Paris, reflecting the new manager's fascination with Japan."

"Each call to the market will now provide him with his starting investment. The best way to orchestrate takeovers with other people's money. Small shareholders will thus replace the bankers of the early days."

"This compartmentalized structure proves to be a real treasure. Every time he needs money, Bernard Arnault will introduce one of his subsidiaries to the stock market, without losing control of the whole, or even strengthening it. Perfect mastery of financial techniques. This will be the guiding principle of future operations."

""My father immediately recognized Bernard Arnault's exceptional abilities, even though he had a tendency to engage in bold financial and legal structures," adds Pierre-Antoine Bernheim."

""Without Antoine, Bernard Arnault probably would not have been able to make a name for himself," confirms a former collaborator of the Lazard bank. At that time, Antoine was the savior of the investment bank. After the nationalizations of 1981, Lazard had a near-monopoly on business in Paris."

"The thesis of the left-wing alter-globalist magazine is relatively simple: when the leader of the Italian right is openly the owner of newspapers and television channels, the leader of the UMP exercises indirect, and therefore necessarily more "insidious," control of information through his friends who are media tycoon shareholders. But the underlying tactic of power would be the same. Politis lists: "Martin Bouygues (with TF1), the Dassault family (with Le Figaro, Valeurs actuelles...), Bernard Arnault (Les Echos, Investir, Radio Classique), the one who presents him as his 'brother': Arnaud Lagardère (Europe 1, Paris-Match, Le Journal du dimanche, Elle...), or even the Chirac sympathizer François Pinault (Le Point), Jean-Claude Dassier (who became president of Olympique de Marseille after having led the LCI newsroom)...." Forming an impressive network of influence."

""When Bernard Arnault applied to acquire Financière Agache-Willot [holding company of Boussac], without the support of Lazard bank, he wouldn't have been able to do anything. There were several potential candidates. When he entered the race, he had neither the financial means nor any particular credibility...""

"Every summer, the magazine Le Point inevitably maps out the topography of this small pocket of billionaires, between the Parks of Saint-Tropez, where the Belgian Albert Frère rubs shoulders with Bernard Arnault and Mohammed Al-Fayed, and the Bay of Canebiers, where Vincent Bolloré's villa is adjacent to that of the widow of Austrian conductor Herbert von Karajan. A little further away, Carla Bruni's family "camp" at the extreme tip of Cap Negre, at the end of Cavaliere Beach, well sheltered from prying eyes, halfway between Saint-Tropez and Fort de Brégançon. Nevertheless, Vincent Bolloré remains a special case in Antoine Bernheim's hunting ground."

"The main managing partners are Jean-Claude Haas, close to the industrialist Jérôme Seydoux, François Polge de Combret, former deputy secretary general of the Elysée under Giscard, Hubert Heilbronn, David Dautresme, Christian de Labriffe, close to Bernard Arnault, or Hélie de Pourtalès, in charge of the international department and government advisory, and as such, "adviser to the central committee of the Soviet Communist Party"...,"

"The managing partner of Lazard bank is considered the main inventor of the "Breton pulleys" system (also known as the "Russian dolls" system), which has greatly contributed to the fortune of his two main protégés: Bernard Arnault and, especially, Vincent Bolloré, who originated the mechanism's denomination."

"In the case of Bernard Arnault, Groupe Arnault will control 85.6% of Financière Agache, which holds 98.6% of Bon Marché Holding, itself holding 58.9% of Christian Dior, a 100% shareholder of Financière Jean Goujon, the principal shareholder with a 42.5% stake in LVMH. Historically, this system of "poulies bretonnes" has sometimes been criticized for favoring opacity in the financial situation of the groups in question, with the debts of the parent companies often being "transformed" into equity in the entities located on lower levels."

""For Bernard Arnault, I did everything. I stood as a guarantor vis-à-vis the banking system. I supported him wholeheartedly, but he doesn't always remember it very well,""

""Antoine Bernheim told Bernard Arnault, 'I am willing to take the risk up to the same amount as you.' He committed to investing 90 million francs on behalf of Lazard, matching Bernard Arnault's investment level. This commitment by Antoine Bernheim gave confidence to other investors. We managed to complete the fundraising round, which was far from certain at the time due to Boussac's second consecutive bankruptcy.""

""I met Bernard Arnault in 1984. It was he who came to see me based on my supposed reputation. At that time, he was not much. It was me who made him. When I met him, he had practically only debts. But he had a strategic vision and goals," recognizes Antoine Bernheim,"

""Yes, he obviously helped, especially on two important occasions: the takeover of Boussac in 1984, and then when LVMH was acquired in 1988. Antoine Bernheim immediately believed in Bernard Arnault. He was impressed by his audacity. It was necessary to assess the risk to determine whether it was fatal or not.""

"According to the original legal arrangement that he himself had put together, the Willot brothers would lend their shares to Bernard Arnault so that he could drive the recovery of the Boussac empire, avoid liquidation, and then return the shares to their owners. One year later, the industrialist would buy the remaining shares from the Willot brothers, after restructuring the group by creating a cascade of holdings. "The negotiations were very tough because these were not easy people. They started threatening legal action. Barely had the ink dried, they only thought about reneging on their word...""

"In Croix, in the upscale suburbs of Lille, Bernard Arnault has neighbors who are descendants of the Mulliez, Prouvost, Masurel, or Dewavrin families..."

"he became the historic mentor of industrialists Bernard Arnault and Vincent Bolloré, and to a lesser extent the advisor of François Pinault, as well as Nicolas Sarkozy, at least in his early years. He also counts among his European "protégés": Italian John Elkann, the heir to the Agnelli dynasty, or banker Gerardo Braggiotti, also a former Lazard associate."

"His son's rapid success is disturbing, especially in this austere region, his own, where everyone watches each other, where only families recognized for generations have the right to be in the spotlight."

"The COB has already pronounced on this point, declaring as early as January 10: "The triggering of the price maintenance procedure must occur when there is a change of control by means of a takeover bid or block sale, which is not the case at LVMH." It clarified: "No text prohibits stockpiling, even if stock market authorities are reflecting on this issue. 36""

"Certainly, on January 5 and 6, he launched a real raid on LVMH. In forty-eight hours, he picked up 870,000 shares, or 7.5% of the capital, propelling the share price to 4,720 francs. He thus secured the minority blocking vote, thanked former president Alain Chevalier, and sat in his CEO chair. But he navigated so well through the intricacies of the law that no one has so far concluded that there has been a change of control (in legal terms). This hypothesis would have obliged him to launch a takeover bid or to carry out a price maintenance, at a cost of around 30 billion francs."

""The notion of solidarity, with Bernard Arnault, emerges as soon as he is faced with a problem. He is then capable of a lot of effort towards his shareholders and financiers. On the other hand, when everything is going well for him, he forgets everyone.""

""Can we believe that champagne is still synonymous with luxury when more than 128 million bottles are consumed on the French market? Is it a luxury to drink cognac when, for our Hennessy brand alone, consumption approaches 2 million bottles in Ireland for just over 3 million inhabitants? Let's talk about prestige instead.""

"eight days, he will become the CEO of LVMH22, the most prestigious luxury group, which recently welcomed one of the rising stars of the finance world, Bernard Arnault, with great fanfare at the beginning of the summer."

"As for the change of control of LVMH, Arnault feels completely safe. He no longer runs the risk of being forced to launch a takeover bid. Since Férinel, he has taken the greatest precautions every time he undertakes an operation. This "procedural" talent almost always spares him."

"On Thursday, May 25th, at 8: 30 PM, on Avenue Montaigne, the party is in full swing. On a beautiful summer evening, Henry Racamier inaugurates the new Vuitton boutique, which is to become the company's headquarters. The marble building is sumptuous. The invitation states: "Come take part in Louis Vuitton's imaginary journey." As soon as they arrive, the guests are transported to another world. The desert sand, in which two huge statues are stuck, surrounds the gate. After crossing the store, all of Paris finds itself in Yemen... Giant slides transform the garden, which is covered for the occasion, into an oasis."

""Whatever the faults of each party, they can only exacerbate." And he adds: "It is not healthy to let a company be led by a team on probation and in disagreement with 98% of its shareholders.""

"To his friends who say he is in love with it, Bernard Arnault responds: "Not at all, love is inexplicable. My position vis-à-vis luxury is on the contrary very rational. It is the only domain where we can generate luxury margins.""

"For the first time, Bernard Arnault has encountered a real obstacle in his path: the resistance of Henry Racamier. Until now, the president of LVMH has always believed that to solve a problem, it was enough to concentrate, work harder than others and find the flaw that leads to the solution. In this month of March, he realizes that Henry Racamier is probably a much more formidable opponent than he had thought. Because the old man never gives up, worse, he gives the impression of giving in to better counter-attack. He likes to fight, for him it's a game, and this game confuses"

"Vuitton's communication is therefore carefully organized. A three-tiered system. First, the son-in-law of the head of Vuitton, Jean-François Bentz, leads with his agency, Creative Business, the subsidiary of RSCG, a prestigious advertising campaign. Photos of distant lands, a mixture of exoticism and dream, link the name of Vuitton to the world of travel. Then, within the house, an integrated service, led by Guy de la Porte, is in contact with the artistic, feminine and economic press. Finally, outside, Michel Frois takes care of Henry Racamier's image."

"They justify themselves to a few close ones. In the strictest confidence: they must ensure the perpetuity of the ancestral companies. Bernard Arnault says he wants to make LVMH the largest luxury group. Perhaps the challenge is worth trying. The families are aware of their limited room for maneuver. All they want is to have peace as before."

"What are these external pieces of information that prompted the attorney general to change his mind? It is difficult to know the source of the instructions and their motivation. What influences were at play? Did Arnault's entourage take advantage of its introductions to the Prime Minister, Michel Rocard, and his chief of staff, Jean-Paul Huchon? It is likely. Did Antoine Bernheim use his connections at the Elysée Palace? It was rumored at the time that Jacques Attali, François Mitterrand's adviser, could join Lazard. A third hypothesis is also plausible: the position of the public prosecutor may be due to the rivalry between the Chancellery and the COB. In any case, from that day on, the public prosecutor will often speak in favor of Arnault's theses."

"The president of Louis Vuitton likes to muddy the waters, it's his nature. When he takes a taxi, he almost always asks to be dropped off a few numbers away from the final destination, out of a taste for secrecy. He is used to booking tables in several restaurants under different names, never his own, so he can choose freely at the last minute where he wants to spend the evening. Some say it's in his genes. In any case, Henry Racamier takes a wicked pleasure in sowing doubt."

"No one speaks anymore. Caution and fear keep the group's employees entrenched in their original company. Those from Moët and Chandon in Épernay, those from Hennessy in Cognac, and those from Parfums Dior in Orléans."

"After two and a half hours of pleading, Bernard Arnault vaguely senses that his opponents have gained an advantage. He wants to defend himself and takes the floor with a clear and confident voice to conclude: "It is impossible to manage this company with Mr. Racamier present." Visibly moved, the president of Vuitton responds: "The management of Vuitton, as demonstrated by its results, is valid. Mr. Arnault has the will to take power everywhere and immediately.""

"Mrs. Piniot recalls that Moët's management had committed to placing the warrants with foreign investors. However, she notes that more than two-thirds of the issued warrants were placed with French institutional investors who agreed to hold them for a certain period of time. These included the Caisse des dépôts et consignations, the Caisse nationale du Crédit Agricole, Crédit Lyonnais, BNP, and UAP. A memorandum of understanding was even considered to formalize this commitment. It was only signed by UAP. Therefore, Mrs. Piniot concludes that there was a "misuse of procedure harmful to minority shareholders." Even more serious, she emphasizes that Bernard Arnault was perfectly aware of this irregularity when he entered the capital of LVMH. When the head of Dior abandoned his takeover bid and opted for a less aggressive solution, Lazard bank assigned one of its partners, David Dautresme, to recover the maximum number of warrants and "negotiate the conditions of their transfer." The operations were carried out through a Luxembourg intermediary, Belmavobel International Securities. Thanks to these negotiations, Arnault obtained nearly 94% of the issued warrants, which ensured him nearly 12% of LVMH's capital."

"To continue his momentum, he needs money. Before going on vacation, he reorganized part of his empire according to a well-established technique for raising capital: the placement of Dior's capital. Until then, Dior Couture was 100% owned by Boussac Saint-Frères. He transformed it into a financial holding company, brought his stake in LVMH and offered it to private investors."

"Technically, his ascent has been flawless, but he realizes that it has been brutal and aggressive in human terms. He had no choice. Faced with a plot to dismantle the group, he had to intervene at all costs. He did it. Today he must assume the consequences. And let it be known that the group is led by one person.""

"The president of Vuitton acknowledges his mistake. He was wrong about Bernard Arnault. He says he had a premonition: "When I signed the alliance pact with him in June 1988, I extended my hand to him. A rag. I had an animal reaction, thinking I was wrong. But it was done. After that, I rationalized." Today, he regrets Alain Chevalier, with whom, after all, the relationship could have been less difficult."

""I am the boss. From Monday morning, I will be here and personally lead the company. There will be no power vacuum. I will now personally oversee the communication of the group. Beware of talkers.”"

"So, at 5 am, he concludes an agreement. Anthony Tennant obtains a seat on the new board of directors of LVMH and increases his stake in "Jacques Rober" to 45%. Concession, says Bernard Arnault. Joke, comment the detractors of the young wolf who quip, "Arnault has found 45% of his financing." But Arnault retains what is crucial for him, the exit"

"He has other concerns: to strengthen his treasury depleted by the purchases of September. He will do it through the Bon Marché."

"In secret, Bernard Arnault acquires his very first shares. In this autumn of 1987, he moves forward slowly. He waits to replenish his cash reserves. Certainly, his group has 3 billion francs. But that is not enough for the president of Dior. He starts by appealing to private financing. In less than a month, he manages to gather the equivalent of 1.5 billion francs in various credits. 13"

"On September 15th, a statement from Financière Agache made it clear: Jacques Rober holds 32% of the capital. Considering the Obsa he possesses, his participation amounts to 37.4% after dilution, but more importantly, Bernard Arnault is approaching the blocking minority in voting rights, a blocking minority that until now only the Vuitton clan possessed."

"The technique, although complex, is perfectly mastered. This is the fourth time he has used it: one year before, he introduced Conforama on the second market, then the holding company Arnault and Associates, of which the family kept only 60%. He has just placed 42% of Dior's capital with private investors to raise 3.3 billion francs, which allowed him to continue buying LVMH shares. The principle is simple: 1. He buys companies; 2. He improves them; 3. He can then raise capital to make new acquisitions."

"André Battestini remembers his first meeting with Arnault. The icy atmosphere of rue François-Ier contrasts with the warmth of the Vuitton offices. "Bernard Arnault knows how to charm when he needs to, but at first glance, he looks like a cold fish," he recalls. The boss of Dior had to redouble his amiabilities to secure the trust of his first allies. The meetings multiply in June in a secret location: Michel Piétrini's Parisian apartment in the eighth arrondissement. The strategy of concerted attack by both parties is developed."

"The providential opportunity came with Peaudouce. The last French diaper company is very profitable. It generates a turnover of 2.1 billion francs and makes nearly 100 million in profits. Arnault will be able to sell it at a high price. Therefore, he begins negotiations with the Swedish group Mölnlyck in the fall. As a skilled negotiator, he manages to impose his price: 2 billion francs. This decision provokes the anger of the public authorities who threaten to refuse the sacred authorization for foreign investments in France to the Swedish group. "Peaudouce was too small to resist the global giants in the sector," argues Bernard Arnault. On January 20, 1988, he signs the sales agreement. At the same time, during a lunch with Christian Derveloy, the president of Prouvost, he negotiates the sale of his textile activities. 14."

"On the eve of autumn, Anthony Tennant is embarrassed. Certainly, the agreements of July 8 have allowed him to strengthen his positions in LVMH and especially in Moët-Hennessy, to which he is linked by a vital distribution agreement. But is the alliance with Bernard Arnault really reliable? Two nights (July 6 and 7) were too short to give birth to "Jacques Rober". The terms of the contract seem increasingly ambiguous as the days go by. Wasn't the Briton naive? And he remembers a banker's joke: "Jacques Rober is JR, the villainous hero of the Dallas series." For Bernard Arnault, the agreements are clear: the two parties are associated for at least three years within Jacques Rober, with 60% for Bernard Arnault and 40% for Guinness, with the aim of acquiring 30% of LVMH, except for "unforeseen circumstances". Each party agrees not to buy outside the joint structure without prior consultation. In other words, it is possible to pick up shares provided that one's partner has been informed, but without waiting for their response. The Briton is worried. Aren't there two possible interpretations? Can't Arnault buy more easily than Guinness? What is an "unforeseen circumstance"? What will happen beyond the 30% threshold? And above all, if Guinness wants to sell its stakes before the three-year deadline, it will only be compensated for 80% of the value of its shares. The terms of the "largely interpretive" agreement reduce Anthony Tennant's room for maneuver."

"One can well imagine their first conversation on the phone, one morning in early May: “Would you be interested in a stake in LVMH, Henry Racamier must have said, somewhat condescendingly.” “It would be a great honor, Bernard Arnault certainly replied in the tone of the greatest deference.” When the young boss of Dior hangs up, his smile is carnivorous. "I won," he probably thinks, before inviting his top executives to lunch. Bernard Arnault does not warn Antoine Bernheim. It is still premature. Lazard is already engaged with Chevalier. So he turns to Crédit Lyonnais for the occasion. A first meeting is scheduled with Henry Racamier's banker at the Dior headquarters."

"competitors do: manufacture in France to guarantee exceptional quality and sell in the Far East. The recipe is good. In 1977, Vuitton had two stores, a hundred employees, 70 million francs in turnover, and 7 million in profits. A few years later (1984), it will be 1,217 people, 1.1 billion francs in turnover, and 197 million in profits, and much more thereafter."

"On Wednesday, October 26th, Bernard Arnault chose the general assembly of his flagship company (Financière Agache) to announce his plans: now that he holds a blocking minority in LVMH, he will restructure his distribution group (Bon Marché, Belle Jardinière, Conforama) inherited from Boussac around a clear organizational chart with the goal of raising capital. The plan: Bon Marché becomes the parent company of Conforama, of which it will own 86.5% of the capital, and strengthens its stake in Belle Jardinière to 75.7%. At the end of the operation (see table 2), the whole group will combine a large real estate capital (about 100,000 square meters for Bon Marché alone) with a significant distribution force. It will represent nearly 300 million francs in net profits in 1988 for a turnover of over 7 billion francs. This structure will allow Bernard Arnault to appeal to the market under good conditions. He plans to proceed with a capital increase of 2.4 billion francs, which will be reinvested in Christian Dior."

"Bernard Arnault is one of the best financiers of his time. He likes to buy, restructure, buy again, and restructure again."

"In this autumn of 1987, Bernard Arnault's attack plan is ready. His springboard will be Dior, his aircraft carrier, Crédit Lyonnais, his fighter jets, Lazard, and his various companies will serve as ammunition. As for his objective, it will be LVMH."