In light of PPR's agreement to launch a public offer open to all Gucci shareholders in March 2004, and after contacts with the investigators named by the Enterprise Chamber of the Amsterdam Court of Apples, LVMH, PPR and Gucci have reached an agreement and settled their dispute.
The agreement provides as follows:
– LVMH will immediately sell 8 million Gucci shares to PPR at $94 each;
– Gucci will distribute a special dividend of $7 per share to all Gucci shareholders, except PPR, in December 2001; and
– PPr will launch a full public offer for all Gucci shares at $101.50 per share in March 2004.
LVMH will monetize all its gucci shares before the end of 2001. As a result, LVMH will receive approximately Euro 2.1 billion in cash before the end of this year, including nearly Euro 760 million in capital gains on its Gucci investment.
LVMH's primary objective has been to obtain a fair solution for all Gucci shareholders. The agreement announced today achieves this objective and responds fully to the interests of LVMH's own shareholders.