De Sole
Strategic Concepts & Mechanics
Primary Evidence
"At the same time, the executives of Kroll Associates in France, an American economic intelligence company engaged by LVMH for several weeks to find any exploitable weaknesses in both Gucci and De Sole and Ford, fax the news highlights to their European management in the UK, without hiding their surprise: "We are speechless," they write. The intelligence agency wasn't informed..."
"A foundation was created by Gucci for the occasion, for the benefit of its employees. This foundation bought the shares on their behalf, using money borrowed from... Gucci. However, although these new shares are theoretically reserved for employees, they will never actually see them. Because they are non-transferable and will never be converted into individual shares. It's a temporary protection. At the end of the operation, Gucci plans to destroy these shares that it has created and financed itself, and only pay a flat premium to employees, which can reach a maximum of $ 13 million in total. De Sole and Ford are ecstatic: "We have the support of employees, suppliers, and independent shareholders," De Sole proclaims. Ford is not far behind: "I give my unconditional support to the measures taken by the board to safeguard our independence.""
"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."
""I like to build," says De Sole. "Me too," replies Pinault, who suggests transforming Gucci into a multi-brand luxury company, like LVMH. The two men shake hands. The deal is sealed, although there are still many things to be settled, in terms of price and legal protection of the independence promised to Gucci."