LVMH’s purchase of BULGARI overshadows BURBERRY’s sale
In a board meeting of LVMH Group yesterday in Paris, Chairman and majority shareholder Bernard Arnault defended his decision to take over BULGARI and pay over 3,7 billion euros for the Italian jeweller as a strategic move which will pay off in 7 to 8 years.
LVMH’s ”surprise” take of BULGARI and the advances the group made on Indian Gitanjali jewellery group seem to have completely overshadowed the very much anticipated sale ofBURBERRY, which has been expected for this year. The effects could translate not only into a devaluation of the British brand but also into a slow down in the exceptional performance of the brand. Market sources indicate that behind the scenes negotiations between BURBERRY and PPR (Gucci Group) having reached a deadlock mid last month. CPP‘s Oliver Petcu indicated early March that Burberry’s take over by a major Asian group is more likely.