|
Gucci-LVMH decision near
|
 |
April 7, 1999: 11:09 a.m. ET
End in sight for talks on LVMH's $8B bid for Gucci, report says
|
LONDON (CNNfn) - LVMH's bid to gain control of Italian fashion house Gucci appeared closer to a settlement Wednesday with a decision expected in the next few days.
Gucci agreed March 22 to talk with the French luxury goods group after LVMH increased its offer for the company to $8 billion. The two sides met again Wednesday in Amsterdam to discuss the $81 per share offer.
A source close to the talks told Reuters that the discussions were "flexible". The wire service reported that a decision is expected in the next few days.
Gucci had initially tried to frustrate LVMH's efforts, after it accused the French company in February of trying to pull off a takeover "by stealth" by building up a 34 percent stake in the Italian fashion house.
Gucci's first defense effort, to introduce an employee stock option plan, floundered after a Dutch court blocked the proposal. Instead, the company sold a 40 percent stake for $3 billion to French retailer Pinault Printemps-Redoute, by issuing 39 million new shares.
LVMH subsequently increased the total value of its bid by extending it to include the newly created share capital, although the offer price was reduced by $4 per share.
Reuters cited a "source familiar with the situation" saying a Gucci board meeting was likely Thursday.
Gucci's shares were off 2.4 percent in Amsterdam at 73.30 euros. LVMH was 2.62 percent lower in Paris at 226.9 euros, while Pinault's stock was up just under 1 percent at 154.3 euros in Paris. 
|
|
|
|
|
 |
|
