Bernard Arnault
From Wikipedia, the free encyclopedia
| Bernard Arnault | |
 |
|
| Born | March 5, 1949 Roubaix |
|---|---|
| Occupation | Chairman, LVMH Chairman, Christian Dior SA |
| Net worth | ▼$25.5 US dollar |
| Spouse | Hélène Mercier (Pianist) |
| Website LVMH.com |
|
Bernard Arnault (born 5 March 1949 in Roubaix) is a French businessman. He is the 14th richest person in the world and France's richest person with an estimated net worth of $26 billion US dollars, according to a Forbes report in March 2007.[1]
In 2007, Arnault was listed among Time Magazine's 100 Most Influential People in The World.
Contents |
[edit] Education and Business Career
As of March 2007, Arnault owns a 47.5% plurality[2] of LVMH (Moët Hennessy Louis Vuitton), along with Christian Dior SA and personnal holding company Groupe Arnault . Arnault is the Chairman and CEO of all three companies.
Mr Arnault's father, Jean Arnault, was an industrialist, and owner of a public works company, Ferret-Savinel.
After graduating from the Maxence Van Der Meersch high school, Bernard Arnault was admitted to the École Polytechnique (X1969) from which he graduated with an engineering degree in 1971. After graduation, Mr Arnault joined his father's company. In 1976, he convinced his father to liquidate the construction division of the company for 40 million francs, and to change the focus of company to real estate. Using the name Férinel, the new company develops a specialty holiday accommodation. In 1979, he succeeded his father as president of the company.
When socialist François Mitterand was elected President of France in 1981, Mr Arnault emigrated to the United States and created Ferinel Inc. Through this vehicle, Mr Arnault prospered, developing codominums in Palm Beach, Florida. Three years later, when the French Socialists switched to a more conservative economic course, Mr Arnault returned to France and became CEO of Financière Agache, a luxury goods company. With the help of Antoine Bernheim, managing partner of the Banque Lazard investment firm, and government subsidies conferred in exchange for a promise not to downsize, Mr Arnault acquired Boussac, a textile company in turmoil. The Arnault family put up just $15 million of their own money, with Lazard supplying the rest of the reported $80 million purchase price [3]. Mr Arnault sold nearly all the company's assets, keeping only the prestigious Christian Dior brand, and Le Bon Marché department store.
In 1987, shortly after the creation of LVMH, Mr Arnault exploited a growing conflict between Alain Chevalier, Moët Hennessy's CEO, and Henry Recamier, president of Louis Vuitton. The new group held property rights to Dior perfumes, which Mr Arnault craved to incorporate into Dior Couture. He created a holding company of which he owned 60% and Guinness, who had a distribution agreement with Moët-Hennessy, owned 40%. Following the October 1987 stock market crash, he capitalized on the lower quoted price and soon owned 43% of LVMH. He then consolidated his position by purging executives from both companies. He has since then led the company through an ambitious development plan, turning it into the largest luxury group in the world, ahead of Swiss luxury giant Richemont.
More recently, Mr Arnault, through personal holding Groupe Arnault and associates at Colony have had their eye on Carrefour, a supermarket, buying into the company in March 2007.
Arnault also owned the art auction house Phillips de Pury & Company from 1999 to 2003.
[edit] Personal Information
Mr Arnault is twice married, and the father of five children. His daughter Delphine Arnault is actively involved in the management of LVMH. His second wife, Hélène Mercier, is a pianist from Quebec. Mr Arnault is a noted art collector. Following the example of business man François Pinault, he created a Louis Vuitton foundation for contemporary art, which should open at the Jardin d'acclimatation in 2010.
Arnault was a witness at future President Nicolas Sarkozy's wedding to Cécilia Ciganer-Albéniz. He was also awarded the French Legion of Honor.
[edit] Competitors
Arnault's main business competitors are:
- French businessman François-Henri Pinault, whose holding company PPR owns Gucci, Yves Saint Laurent, Alexander McQueen, Stella McCartney, Sergio Rossi, Bottega Veneta, Boucheron, Roger & Gallet, Bédat & Co and Christie's.
- Swiss-based Richemont, which owns Cartier, Van Cleef & Arpels, Piaget, Baume et Mercier, IWC, Jaeger LeCoultre, A. Lange & Söhne, Officine Panerai, Vacheron Constantin, Dunhill, Lancel, Montblanc, Montegrappa, Old England, Purdey, Chloé, and Shanghai Tang.
[edit] Controversies
In January 2007 Kathryn Blair, the daughter of former British Prime Minister Tony Blair, completed an intensive French language and culture course at France's Sorbonne University. Tony Blair has been criticised for accepting an invitation on her behalf from Bernard Arnault. During Kathryn Blair's course, which ran from 12 October 2006 to 26 January 2007, she is thought to have been provided with an accommodation, security and transport package worth around £80,000.[4]
[edit] See also
[edit] References
- ^ Profile in Forbes, retrieved on March 8, 2007
- ^ Annual General Meetings - Group Investor Relations - Corporate Governance - Shareholders - Activities - LVMH Share
- ^ Bernard Arnault - Learning the Family Buisiness
- ^ "Cherie's pride at her graduate girl (...and the Blairs managed to negotiate a freebie, too)", Gordon Rayner and Peter Allen, Daily Mail, 12 February 2007
