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Gucci turns down LVMH bid
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April 8, 1999: 9:50 a.m. ET
Italian fashion house nixes $85 a share bid, but will listen to more offers
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LONDON (CNNfn) - The board of Italian fashion house Gucci turned down the latest offer from hostile French suitor LVMH Thursday.
Gucci shares soared earlier in the day when news of the board meeting in London leaked into the market.
LVMH, owner of luxury items from Louis Vuitton luggage to Moet et Chandon champagne, was said to be close to a deal after reportedly increasing its $8 billion offer for Gucci by 9 percent to $85 a share.
Gucci rejected the bid citing an undisclosed condition but said it would entertain further offers from the French company.
The two sides agreed to enter negotiations after LVMH raised its initial bid. Gucci had previously tried to frustrate the approach, after it accused the French company in February of trying to pull off a takeover "by stealth". LVMH had built up a 34 percent stake in the Italian fashion house.
Gucci's New York-quoted American depositary receipts rose 4 percent to 81-1/4.
LVMH (PMC) shares fell 1 percent to 225.5 euros on the Paris bourse.
-- from staff and wire reports
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