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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Zakattack who wrote (29553)	4/20/1999 7:32:00 AM
From: Tim Luke	Read Replies (1) \| Respond to of 90042

now that guc said they would deal if LVMH coughs up 88 i think we are in business.....10 points is 10 points . . .Monday April 19, 3:45 pm Eastern Time France's LVMH Targets Gucci PARIS (AP) -- France's LVMH Moet Hennessy Louis Vuitton [Nasdaq:LVMHY - news] indicated it will continue its quest to become one of the world's largest luxury goods companies, saying Monday it still wants full control of Italian fashion powerhouse Gucci Group. LVMH repeated its commitment to a full takeover in a publication of its first-quarter revenues. But a resolution to the bitter months-long struggle between the French and Italian companies doesn't appear to be coming soon. Gucci has fought off repeated efforts to be acquired by Bernard Arnault, LVMH's hard-charging chairman. He has a 34 percent stake in Gucci and built LVMH by winning brutal American-style takeover battles. In an effort to prevent the buyout and dilute LVMH's stake in Gucci, the Italian company earlier this year sold or issued 44.03 percent of shares to employees and French retailer Pinault-Printemps-Redoute. Monday, Gucci said in a statement its board had rejected all ''conditional'' proposals from LVMH, saying the conditions attached were ''unacceptable.'' LVMH has offered a series of bid scenarios for Gucci, including one that would offer $85 per share but would impose some conditions over management control. Gucci's board, however, said it is prepared to recommend to shareholders an unconditional offer for all shares at a minimum price of $88 per share. Both companies will take their battle to a Dutch commercial court Thurday for a hearing on LVMH's request for an investigation into Gucci's management practices. LVMH hopes such an investigation could result in the cancellation of shares Gucci issued to its employees and the French retailer. LVMH said in its financial report that first-quarter revenues rose 13 percent to 1.76 billion euros ($1.58 billion), boosted by a higher champagne sales and a rebound in Asian demand for cosmetics and leather goods. .