Chapter 246 Bernard Arnault tries to struggle
The sun sets in the west, the silver moon rises in the east, and the day passes quickly.
Before the door of the Paris Stock Exchange was opened, Paladin Investment France Company submitted an application for equity information disclosure and company suspension to the relevant departments with integrated equity certificates, related contracts and other documents.
The Blackburn Foundation's clever planning ensured that the contracts were perfectly timed.
When initially acquiring the shares of BNP Paribas, André reached a tacit agreement with David Baptiste to deliberately not fill in the specific date of the transaction contract in order to cleverly manipulate time.
Although this practice may give people the suspicion of skirting the law, everything appears to be legal and compliant on the documents.
Unless David Baptiste is willing to reveal the truth and risk going to jail and paying a huge fine, this secret will remain unknown.
Stock exchange staff were shocked by Paladin Investment's shareholding ratio.
Because there was no news about this beforehand.
But after a preliminary review of the transaction process and confirmation that it was correct.
They confirmed that Paladin Investments is the largest shareholder of LVMH and agreed to its application for suspension of trading.
So, before the stock market opens in Paris.
A shareholding disclosure information caused an uproar in the exchange, and LVMH Group suddenly announced a suspension of trading.
The news that Paladin Investment's French branch had become the largest shareholder with a shareholding ratio of 48.5% shocked everyone.
An authoritative voice immediately commented.
It is estimated that the transaction involves at least US$5 billion, or about 30 billion New Zealand francs.
This is like throwing a huge rock into a calm lake, causing ripples.
Not only investors who held shares, but also other companies in the same industry felt the shock.
But not many people have heard of Paladin Investments.
Fortunately, there are many media outlets that are willing to popularize science, so many people immediately knew that this is a company from the United States.
And its owner is the world's richest man who has a great reputation all over the world.
The owner of the world's largest Internet company, Milo Blackburn.
This financial giant used to only hang out in the United States.
A while ago, it was reported that this American company acquired several media companies in London.
The first time it appeared to the French, it suddenly entered the boutique market.
If it leverages its financial and capability advantages, how much impact will it have on other companies in the same industry?
At a time of turmoil in the financial markets, André personally led the team to LVMH.
Although Paladin Investment is only the largest shareholder with a relatively controlling position.
Although he does not hold any director or chairman position on the board, he is fully qualified to initiate board re-election with such a large number of shares.
Faced with Paladin Investment holding up to 48.5% of the shares, the changes in the board of directors and the joining of Paladin Investment seem to be a foregone conclusion, and no one dares to question it publicly.
Of course, the silence from employees and executives does not equate to any reduction in Bernard Arnault’s ambitions for LVMH.
In the LVMH conference room, Bernard Arnault attended the meeting after being notified by Andre and listened to the proposal.
This Frenchman, who could become the world's richest man in the future thanks to the rapidly expanding luxury goods market, now looked gloomy and his eyes were as hot as flames. He firmly expressed his opposition: "I strongly oppose it!"
"Since those directors have already resigned, their seats are naturally vacant. If you want to join the board of directors, you must be re-elected at the shareholders' meeting, and you cannot directly replace them!"
Despite the emergency, Bernard Arnault retained some sanity.
He knew that he could not let Paladin's investment in the French branch succeed easily, and he had to buy time to find other solutions.
As chairman, Bernard Arnault's objection would cause flaws in the process even if Paladin Investments already had a relative controlling stake and was the largest shareholder.
Andre and his team had analyzed this possibility before the meeting.
Therefore, when faced with Bernard Arnault's opposition, he was only slightly regretful, but he still continued calmly: "Our company holds 48.5% of the shares, and you hold 34.5%. The rest are small shareholders. The shares of both of us are enough to convene a shareholders' meeting."
"I propose to hold an extraordinary shareholders' meeting this afternoon!"
As soon as Andre finished speaking, one of his subordinates quickly placed a notice on the table in front of Bernard Arnault.
However, Bernard Arnault did not even glance at it. He replied expressionlessly: "You can hold an extraordinary shareholders' meeting, but everything must be done in accordance with the company's articles of association."
In the conference room, the air was filled with a tense atmosphere.
André stared at Bernard Arnault calmly and said in a steady voice: "Mr. Arnault, please understand that the shares and voting rights we hold already exceed the total of you and the Vuitton family, even if you count the voting rights. Your shares and voting rights are not a threat to us. We don't need to make the situation worse."
There was a hint of unquestionable confidence in his words, as if he was warning the other party that any argument would be of no use.
"By the way, we are fully capable of purchasing your shares." He continued, his tone carrying an irrefutable determination, "Please name a price."
At this point, Alain Chevalier, a special adviser to the acquisition team and a mascot to stabilize LVMH executives, gently interjected, trying to persuade the other party in a more rational way:
"Mr. Arnault, Paladin Investments comes with full sincerity. I personally suggest that you consider transferring your shares to Mr. Blackburn. This will bring you enough funds, and you will have the opportunity to fully control a new company and develop it according to your own ideas."
However, Bernard Arnault was not shaken by these words. His eyes were cold and he ignored Alain Chevalier's advice.
His expression did not change at all, he just turned to Andre firmly and declared in a firm tone: "I will never sell my shares."
He then raised his doubts, with obvious distrust in his tone:
“Mr. Andre, LVMH is a listed company. According to financial market regulations, any share changes of more than 5% need to be disclosed. I don’t understand how you acquired more than 48% of the shares in such a short time.”
His voice revealed serious doubts about the legality of the entire transaction:
“Even though you now hold 48.5% of the shares, whether you can continue to hold it still requires the approval of the law and the Financial Supervisory Commission.”
After saying this, Bernard Arnault said no more. He snorted coldly, stood up and left the meeting room without hesitation.
Andre's subordinates showed angry looks on their faces and wanted to fight back immediately, but seeing that their second-in-command Andre was still sitting there expressionlessly, they could only hold back their anger.
At the moment when Bernard Arnaud disappeared outside the door, Alain Chevalier couldn't help showing a trace of worry between his brows. He turned to Andre and said with a little uneasiness in his tone:
"Mr. Andre, it seems that Bernard Arnault is ready to disclose the legality of the transaction to the Securities Regulatory Commission."
He continued: “If the regulator intervenes and suspends LVMH’s equity changes, we will not be able to hold the extraordinary general meeting of shareholders on time or reorganize the board of directors in a timely manner.”
Andre snorted disdainfully and responded, "Mr. Chevalier, please be at ease. Our strategy has already taken this possibility into account to prevent any unexpected events. If Bernard Arnault really wants to report it, let him do it. He underestimates the influence of our Paladin Investments."
He then ordered: "Please, as the representative of Paladin Investment, ensure that the extraordinary general meeting of shareholders and the board of directors are scheduled at the nearest time in accordance with the LVMH Group's charter and all shareholders are notified. Since Bernard Arnault is so ignorant of the times, we will take alternative measures."
As soon as Andre finished speaking, Alain Chevalier smiled and nodded his head, promising, "I understand. I will handle these matters properly."
He has not forgotten how he was driven out by Bernard Arnault.
This time when he came back, he also wanted to get rid of Bernard Arnault if possible.
But Bernard Arnault only owns more than one-third of the shares.
It's not so easy to get rid of him, so he didn't make trouble just now and tried to persuade Bernard Arnault to give up on his own.
But Bernard Arnault did not give up.
Alain Chevalier understood this.
Because of this situation, if he were put in Bernard Arnault's position.
Alain Chevalier knew that he would never give up so easily!
So the fight would continue, and Alain Chevalier could do nothing about it.
He can only try his best to use his reputation within the company group.
Reassure those executives and tell them not to act rashly before the outcome of the high-level struggle comes out.
Because it is obvious that what Milo wants is a complete LVMH Group with development potential.
Rather than a giant boutique firm with a ripped-off interior.
André then left with his entourage, while Alain Chevalier went around to reassure the employees and take action according to André's instructions.
After leaving, Bernard Arnault immediately filed a complaint with the Securities Regulatory Commission as a major shareholder of LVMH Group.
He questioned the legality of Paladin Investment's acquisition procedures and demanded a comprehensive review of the acquisition process to protect the rights and interests of the company's shareholders.
Since Bernard Arnault brought reporters with him to report the case, the CSRC quickly accepted the case.
And asked the Paris Stock Exchange to suspend all proceedings involving LVMH Group.
In the financial world, any tiny fluctuation can be quickly captured by a keen observer.
What's more, Bernard Arnault acts so high-profile.
As soon as the news came out, the emotions of investors and institutions who had thought that everything was settled and expected Paladin Investment to launch a full acquisition offer were ignited again.
Could it be that Paladin's investment plan has failed? Will this acquisition involving more than 5 billion US dollars, which is considered the largest acquisition in the French business world this year, be successfully completed? "Boss, I must apologize to you. Things did not go as smoothly as expected. In the meeting room of LVMH Group, Bernard Arnault's attitude was extremely firm and he threatened us. He is very likely to report us to the securities regulator."
As soon as Andre returned to the company, he immediately reported the whole incident to Milo and described in detail everything that had happened.
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Bernard Arnault had just left and André had returned to the company, so Bernard Arnault had not yet completed his report.
However, based on his performance in the meeting room.
André seriously doubted that Bernard Arnault would take such a step.
Therefore, he reported to Milo in advance so that precautionary measures could be taken.
After Milo finished listening to the report, an elusive smile appeared on the corners of his mouth, and he said to himself with a slightly sarcastic tone: "Threat? Report?"
Then he smiled contemptuously.
If Bernard Arnault controlled a company that was related to the French national economy and people's livelihood.
Given Princess Elysee's abilities and the French national character.
There is a high probability that something will go wrong.
But what he acquired this time had nothing to do with France's international reputation; it was a luxury goods company.
For the vast majority of ordinary people, including the vast majority of ordinary French people.
LVMH is too far away from them!
And LVMH is not the only boutique company in France.
Even within France, LVMH can only rank in the top three at best.
Therefore, the attitude of the Elysee Palace will definitely not be too firm.
They need to consider the attitude of Americans and be cautious about whether to offend Americans in order to maintain a boutique group.
At this time, Andre remained silent, waiting for Milo's instructions.
After laughing, Milo said to Andre: "Since Bernard Arnault has chosen to resist, there is no need for us to negotiate with him about the acquisition."
He paused and continued, "If you choose to fight, you must bear the corresponding consequences."
"If the securities regulator accepts the report, can you handle it as soon as possible?" Milo asked.
Andre thought for a moment, nodded firmly and replied: "I can handle it."
It can be said that this acquisition plan has only one flaw in the legal procedure.
That is what I said before, BNP Paribas took the initiative to confess and admitted that there was a problem.
But in that case, not only would David and other executives have to go to jail, but BNP Paribas itself would have to pay a huge fine.
The potential loss of goodwill that BNP Paribas may suffer as a result is unacceptable to its shareholders.
So even this only flaw is not a flaw under this premise.
So Andre certainly had confidence, even if Milo didn't take action himself.
With their plan, Bernard Arnault's resistance was in vain.
"Very good, then I'll leave it to you. If you encounter any problems, be sure to inform me immediately."
Milo added, his tone revealing a hint of unquestionable authority.
"Understood, Boss." Andre replied briefly.
Less than half an hour after Andre left, a new scene began.
Bernard Arnault's whistleblowing incident finally broke out, and the news spread like wildfire.
Upon learning of this, Andre immediately reported the situation to Milo.
Milo showed little emotion, but calmly instructed Andre to deal with the matter quickly, then let him go.
The progress of the Paris Securities Regulatory Commission's audit investigation into LVMH will be crucial for the upcoming extraordinary general meeting of shareholders and the subsequent board of directors.
In order to speed up the investigation, Milo used his personal connections to push the investigation to a quick conclusion and made Andre show a high degree of cooperation with the investigation team.
As a close friend of the "No. 1 Senior Advisor of France", and since arriving in France these days, there have been various parties and cocktail parties almost every night.
It can be said that Milo has had extensive contacts with the current top brass of the Elysee Palace in a very short period of time.
In addition, although Bernard Arnault has a certain influence in the capital market, it is still insufficient compared with the professional status of Paladin Investment.
In terms of public opinion, Bernard Arnault attempted to use media hype to attract public attention in order to win social sympathy and put pressure on the authorities.
But he clearly underestimated Milo's influence in the media field.
Even though Paladin Media's headquarters is in the United States, he has not been idle during these days in Europe.
In the evening, when the major evening newspapers were published, public opinion did not stand on his side, but raised questions: "As a professional large financial institution, would Paladin Investment make such a low-level mistake?"
By the next morning, it became even more obvious that the balance of public opinion was not tilting towards Bernard Arnault.
The situation is becoming clearer.
France's leading newspaper Le Monde also reported on the incident and conducted an in-depth analysis from an impartial perspective.
In this detailed long analysis, several strategies are discussed to gain a 48.5% stake in a very short period of time.
Although extremely challenging to implement, it shows that it is possible for Paladin Investments to maintain a 48.5% stake in LVMH in compliance with the law.
The article then explores Bernard Arnault’s position and motivation for reporting, and examines his past actions to increase his shareholding, revealing his desire for control of the company.
It also revealed that he drove out Alain Chevalier and forced the three founding families to withdraw from the board of directors.
It seems neutral, but after reading the whole article, readers can easily regard Bernard Arnault as an outsider who is greedy, ambitious, and has a strong desire for control and has robbed the LVMH Group.
If you look at it from this perspective.
The Americans became the white knights, coming to save the three founding families of LVMH and to welcome back Alain Chevalier, the hard-working co-founder.
In particular, Paladin announced shortly afterwards that once the restructuring of the board of directors was successful.
They will continue to employ Alain Chevalier as CEO and invite the three co-founding families that were kicked out by Bernard Arnault back to continue serving as directors.
Even though two of the families no longer have shares.
As a result, public opinion in France increasingly leaned towards the French Paladin Investment Company.
After reading the report in Le Monde, many readers had a negative impression of Bernard Arnault.
At the same time, we look forward to the results of the Securities and Exchange Commission's review and investigation into this matter.
Many people now want to know whether Paladin Investments acted legally and compliantly throughout the acquisition process, and if so, how they accomplished this. Public attention has prompted the Paris Securities and Exchange Commission to speed up its review and investigation.
(End of this chapter)