Fashion Faux Pas: Gucci & LVMH

The case was written to demonstrate to students the practical dimensions of acquiring interest and influence in publicly traded companies. The takeover laws and rules regarding publicly traded companies differ dramatically from country to country, as illustrated in the case. Class discussion typically revolves around whether a change in ownership should result in a premium being offered to all shareholders, including minority shareholders, and which actions taken by companies to either preserve their independence, capture a premium, or preserve the power of management are appropriate. An additional area of topical discussion is often that the concept of "fair to shareholders" may be culturally specific to the expectations of what shareholders in any specific market have learned to expect.