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LVMH to Take Control of Italy's Bulgari
The French luxury products maker LVMH Moet Hennessy Louis Vuitton SA has announced that it will take a controlling stake in Italian jewelry maker Bulgari SpA in an all-share deal as reported by several news wires on Sunday 6th of March 2011.
In a deal expected to be announced later on today Monday 7th of March, Bulgari's controlling family will reportedly tender its 51 percent stake in a share swap that will make them the second largest family shareholder in LVMH. Brothers Paolo Bulgari and Nicola Bulgari, along with Bulgari's Chief Executive Francesco Trapani, also a relative, own about 51 percent of the company.
According to an earlier report by LVMH, which owns some 50 luxury brands that include Louis Vuitton, Moët et Chandon and TAG Heuer, Hublot, will then launch a tender offer for Bulgari's remaining listed shares.
Bulgari, valued at about 2.3 billion euros or $3.21 billion based on Friday's closing stock price of 7.59 euros on the Borsa Italiana, has long been considered as one of the last well known family-controlled luxury brands available to be taken over. An offer by LVMH is expected to include a premium to that valuation.
The deal would reportedly see Trapani taking a senior role in the LVMH group, while the Bulgari family would get board representation.
Through this expected deal, LVMH will gain a major maker of jewelry and watches.
No such news were confirmed or listed on both companies’ official websites when checked earlier this morning by AWJ newsletter team. read more...
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