Henry Racamier

"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."

"This is the birth of LVMH. "We have decided to come together to form a new and very important global entity in the field of high-quality and prestigious products with a strong export vocation," he explains. Henry Racamier, seventy-four years old, adds: "Together we will be stronger." In response to questions, Alain Chevalier lists superlatives. With 13 billion francs in turnover, the new group will be the world leader in luxury industries: 1.3 billion francs in profit, 25 billion francs in market capitalization, enough to impress opponents."

"To achieve his goals, however, he made a major concession to Henry Racamier: LVMH would be led by an executive board and a supervisory board, a more collegiate organization that, for Racamier, would bring more autonomy to the various components of the group. Chevalier cannot oppose this new organization, desired by his shareholders, but he does not appreciate it. He senses that these two capitalists will constrain him, the salaried manager, to execute their choices. For the first time since he became president of Moët-Hennessy in 1982, he discovers that he has shareholders."

"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."

"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.""

""Whatever happens, Bernard, you must know the esteem I have for you," he declares from the outset. "I am delighted, it is entirely mutual, but if you permit me, what is going to happen?" "We are at an impasse, as you can see as well as I can. Our interest, and yours in particular, is to accept the plan proposed by Henry Racamier. It is the only way to come out of this with our heads held high and without damage to the Paris market." "You know that this is a dismantling plan. The Paris market, as you say, would not understand breaking one of its most beautiful jewels to settle personal issues between people who cannot agree after deciding to merge their companies. For my part, it is out of the question for me to be part of such a scheme." "In these circumstances, what must happen will happen," concludes Chevalier, sententious and enigmatic.""

"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."

"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."

"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."

"Henry Racamier is seduced by this challenge. He creates Louis Vuitton SA. His strategy will be twofold: to make Vuitton a noble brand embodying luxury, distant travels, and great adventures through a sophisticated advertising policy. But also to sell worldwide and control its distribution network."

"In fact, Alain Chevalier and Henry Racamier will only carry out one operation together, which will not succeed: the secret purchase of 10% of Hermès' capital through Crédit Lyonnais. A hostile operation that the president of Vuitton will carefully hide from Hermès' president, Jean-Louis Dumas. The veil will never be lifted, and Lyonnais will eventually resell this stake to the traditional bankers of the saddler."

"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."

"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."

"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"

"Such a change cannot be coincidental. Henry Racamier's rehabilitation is carefully orchestrated. He speaks little: an interview with AFP in February, another with Nouvel Observateur a month later; through carefully selected media; rather left-wing, he sends a clear message, always the same: he who built his company, Vuitton, is being kicked out by an unscrupulous financier. It is time to give some autonomy back to the various subsidiaries of the group, a luxury company like his cannot be managed like a wines and spirits company, Moët-Hennessy, whose products are sold in supermarkets."

"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."

"Because Henry Racamier understands that the success of a luxury house depends on a certain Parisianism. "He surrounds himself with princesses," says an ironic banker of him (he has hired Pauline Murat to organize his receptions)."