Moët-Hennessy Louis Vuitton

"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."

"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."

"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 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."

"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."

"Later, Jacques Letertre specialised in the technique known as Greenmail. It consists of buying a package of shares in a takeoverable company with which the repurchase of these securities is renegotiated at a generally higher price under the threat of selling them to a potential acquirer."

"What does Bernheim explain to him? Instead of having a majority, that is to say 51% of the capital of a company A, it is better to hold 51% of a purely financial company B, which itself will hold 51% of company A. The same control over company A can be achieved by dividing the initial investment by two. The reasoning can be extended indefinitely. These are the basic principles of cascading holdings, Russian doll structures, or even stovepipe schemes. The technique is as old as the world."

"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."

"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."

"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."

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

"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."

"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."

"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."

""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.”"

"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."

"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.""

"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.""

"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."

"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.""

""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.""

"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."

""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.""

"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."