LONDON (Reuters Breakingviews) - Moncler offers a costly cure for Kering’s Gucci addiction. The French fashion conglomerate may be considering a bid for the 11 billion euro luxury outwear company run by Remo Ruffini. That would reduce its dependence on its largest brand, but extracting value would be hard.
MILAN (Reuters Breakingviews) - Vincent Bolloré is staging a strategic retreat. Media conglomerate Vivendi, which the French financier controls, is nearing a deal to sell 20% of Mediaset as part of a broad truce with the Italian broadcaster, controlled by the family of ex-Italian Premier Silvio Berlusconi. A deal would end a wasteful legal fight with limited financial damage.
MILAN (Reuters Breakingviews) - Burberry is turning a corner. Strong demand for designer Riccardo Tisci’s new collections has helped the UK fashion group, which is famed for its checked patterns, offset protest-related disruption at its Hong Kong hub. And Chief Executive Marco Gobbetti has a new plan to help his push into mainland China.
MILAN (Reuters Breakingviews) - Investors in Peugeot have suffered an unexpected reverse. Shares in the French carmaker have dipped since Chief Executive Carlos Tavares unveiled plans for a merger with Fiat Chrysler Automobiles. Demanding better terms seems futile, however. Peugeot’s largest shareholders are expected to back the plan, and a vote against the project would undermine the French group’s top asset: Tavares himself.
MILAN (Reuters Breakingviews) - Richemont offers a sparkling vision to Tiffany & Co’s suitors. Though the Swiss group on Friday reported disappointing results, the power of its Cartier and Van Cleef & Arpels brands shone through. The high-end jewellers convert an impressive third of their revenue into operating profit. That gives luxury rival LVMH a target as it pursues a possible takeover of the American group.
MILAN/LONDON (Reuters Breakingviews) - LVMH will need more than Hollywood stardust to extract value from its $15 billion bid for Tiffany & Co. Investors in the jeweller lauded by Audrey Hepburn in “Breakfast at Tiffany’s” are hoping for a higher offer after Bernard Arnault’s luxury conglomerate submitted a proposal worth $120 a share. But the deal will require a lot of polish if it is to make sense for the French company’s shareholders.
MILAN (Reuters Breakingviews) - Bernard Arnault has succumbed to Holly Golightly’s allure. The French tycoon’s luxury goods giant LVMH is pursuing a takeover of Tiffany & Co. Adding the jewelry chain immortalised by Audrey Hepburn to a portfolio that includes Christian Dior and Moet & Chandon would be an affordable indulgence. It would also throw down a diamond-studded gauntlet to rivals.
MILAN (Reuters Breakingviews) - Italy’s newfound political stability is deceptive. The left-leaning Democratic Party and maverick 5-Star Movement are set to form an administration led by outgoing Prime Minister Giuseppe Conte. If confirmed, the new coalition will avert an election and a clash with Brussels. Yet, historic distrust and diverging views of business risk making this alliance as fragile and fractious as the previous one.
MILAN (Reuters Breakingviews) - If only James Bond could come to the rescue of Aston Martin. The British maker of 007’s legendary sports car is struggling. With the future of the automotive industry in flux, once-reliable buyers of trophy assets like Volkswagen or Ford Motor are no longer in the collecting business. Barring the vanity of a flush billionaire, or overeager Chinese player, Aston looks destined to continue skidding out on its own.
MILAN (Reuters Breakingviews) - Italy looks likely to have made a narrow escape in its fiscal battle with the European Commission. The country’s anti-austerity government is likely to avoid damaging EU action thanks to a last-minute budget windfall. That means Prime Minister Giuseppe Conte will not have to embark on politically unpalatable belt-tightening in 2019. But the coalition’s plans for big tax cuts next year mean that tempers may flare up again soon.