Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Richemont launches pounds 1bn bid to buy remainder of Vendome

Sameena Ahmad
Saturday 29 November 1997 00:02 GMT
Comments

Your support helps us to tell the story

This election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.

The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.

Help us keep bring these critical stories to light. Your support makes all the difference.

Richemont, the Swiss-based conglomerate owned by South Africa's wealthy Rupert family, has launched a pounds 1bn cash bid to buy out the minority shareholding in Vendome, which owns some of the world's most glamorous luxury brands, including Dunhill, Cartier, Mont Blanc and Chloe, Stella McCartney's Paris fashion house.

Richemont, which already owns 70 per cent of Vendome, is offering 495p a share for the remaining 30 per cent, valuing Vendome, quoted in London and Luxembourg, at pounds 3.45bn.

The price is a 26 per cent premium to the shares' pre-bid value. Vendome's shares closed 79p higher yesterday at 472.5p.

Though Johann Rupert, chief executive of Richemont, is hoping for a recommendation from Vendome's board, he said that the company may decide not to proceed with the offer if the world's financial markets collapsed further and threatened Vendome's markets.

However, speaking at the group's interim results, Joseph Kanoui, Vendome's chairman, said the financial turmoil had not affected the spending habits of its wealthy customers.

Mr Rupert expects the deal to go ahead smoothly. He said: "This is a generous premium for the minority shareholders. We only approached the board yesterday. We wanted to give them an opportunity to announce their half-yearly results without being prejudiced by a deal. That strategy cost us 60p in one day."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in