LVMH Moet Hennessy Louis Vuitton SA is reportedly to taking a controlling stake in Bulgari SpA, The Wall Street Journal has reported. The new deal would put the family-controlled Italian luxury house into the hands of LVMH, which owns some 50 of the world's top-tier brands including Louis Vuitton, Moët et Chandon and TAG Heuer.
Bulgari currently has a market value of about $3.22 billion. Paolo Bulgari and Nicola Bulgari, along with Chief Executive Francesco Trapani, also a relative, own about 51% of the company. Under the agreed transaction, the family will reportedly trade its shares for stock in LVMH, who will then launch an offer for the company's remaining shares. Senior members of Bulgari's controlling family are likely to take roles at LVMH as well, according to an inside source.
This acquisition is yet another example of the luxury industry bouncing back after sloughing through the recession the past few years. CEF Trapani says that under the LVMH umbrella, the Bulgari brand will continue to highlight its fine jewelry and watches as well as create more of a presence in the currently booming luxury market in China.
Article Source: The Wall Street Journal
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