Today Parsons Boy asked me about the old rumour that Diageo was looking to buy MH, of LVMH (The Institution) fame. Nah, Diageo may buy Jack Daniels, but that’s a story for another day. Right now I’m more interested in LVMH’s offer for Bulgari shares: the Bulgari family has agreed to exchange its 51% stake in the company for shares in LVMH, while LVMH is offering 12.25 euros per Bulgari share in the open market.
I don’t think this is too surprising: sooner or later most big luxury brands fall under LVMH’s belt. Maybe it feels a little odd because all the attention has been on the Hermes acquisition so far, and we didn’t really expect that talks with Bulgari were ongoing. Verdict? A good day for Bulgari shareholders; another ordinary day for the rest of us plebeians.