Pinault Bags Gucci
, apparently upsetting what some said were plans by Arnault, who had controlled 34% of Gucci, to take control of the firm over time. After Pinault’s investment, Arnault saw his stake in Gucci fall to about 20%, denying him a board seat.
What followed was a battle that has raged on for more than two years th rolex watches for sale rough courts in the Netherlands, where Gucci is registered, during which Arnault tried to get Pinault’s investment reversed. rolex watches for sale But today, the two said they reached a settlement and struck a complicated, multiyear deal that will be executed in phases over the next three years.
will relinquish rolex watches for sale its shares for a payment of $806.5 million. The second step calls for Gucci to distribute a dividend of $7 per share to all Gucci shareholders except PPR by Dec. 15.
The final stage of the deal calls for PPR to make a tender offer for all outstanding Gucci shares at $101.50 per share between March 22 and April 30, 2004. Both parties will also drop their rolex watches for sale pending legal claims against each other.
While Arnault will be walking away from Gucci, he’ll be taking a nice stockpile of cash with him. The deal leaves him richer by more than $680 million. LVMH said it would receive about $1.8 billion in cash, including a capital gain, before the end of the year.