Media reports revealed that the deal was struck at the behest of Dutch

Media reports revealed that the deal was struck at

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bonds. Media reports revealed that the deal was struck at the behest of Dutch investigators, who urged the three parties to reach an agreement without seeking legal intervention. The battle for Gucci came to be seen as one of the takeover deals that were becoming increasingly common in the new unified Europe. Though Arnault said that his moves were part of LVMH‟s global strategy of making selective investments in several firms to optimize resources, analysts were quick to remark that he was better at acquiring brands than running them. What the Gucci-LVMH affair really seemed to highlight was the difficulty small family-owned groups faced in remaining independent in the global marketplace. Analysts pointed out that survival had become very hard for these companies, which faced takeover threats from business conglomerates.
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The GUCCI - LVMH Battle 551 LVMH made a profit of $ 700 million in the Gucci deal. The company claimed that it had won the battle: “Getting PPR to make a full bid for Gucci is a victory for all shareholders. As a whole, the deal was a legal and financial succes s for LVMH.” Sources at Gucci meanwhile were relieved that the whole issue was finally over. A company spokesperson said, “It‟s a fair deal. We can all get on with our businesses.”
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Mergers & Acquisitions, and Strategic Alliances 552 Additional Readings & References: 1. Gucci under takeover threat, , January 26, 1999. 2. Gene G. Marcial, Gucci: Will the Other Shoe Drop? , Business week, February 15, 1999. 3. Fashion Fracas, , February 19, 1999. 4. Pinault blows Gucci has LVMH, , March 20, 1999. 5. LVMH investment in Gucci is strategic, , February 26, 1999. 6. Thomas Dana & Dogar Rana, Brawling for Beauty, Newsweek, April 5, 1999. 7. Gucci rejects LVMH proposals, , April 8, 1999. 8. Kirkpatrick D. David, The Luxury Wars, , April 26, 1999. 9. LVMH to Bring Action, , May 27, 1999. 10. Gucci court victory over French rival, , May 27, 1999, 11. LVMH may abandon Gucci bid , , May 28, 1999, 12. The truth about LVMH’s talks with PPR, , June 20, 2000. 13. Gucci files its defense, , 11 October 2000. 14. Gucci intends to challenge LVMH proceedings in the Dutch enterprise chamber, , November 27, 2000. 15. Gucci’s confirms secret and enormous options, , November 29, 2000. 16. Milner Mark, Gucci takes LVMH to court, The Guardian, November 30, 2000. 17. Goldstein Lauren, The Guys from Gucci, , July 15, 2001. 18. LVMH to sell Gucci stake, , July 31, 2001. 19. Battle for Gucci nears end, , September 5, 2001. 20. Gee Francesca, PPR agrees to buy LVMH’s Gucci stake, , September 10, 2001. 21. Gucci’s handbag war over, , September 10, 2001. 22. Marsh Lisa, It’s over, New York Post, September 11, 2001 23. Gucci’s Poison Pill, .
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