By William Stolerman

The Bulgari Family, majority shareholder of the renowned Italian House, Bulgari, has joined forces with the LVMH Group.

Concluded this weekend, the agreement will see LVMH issue 16.5 million shares in exchange for the 152.5 million Bulgari shares currently held by the Bulgari Family. The Bulgari family will then become the second largest family shareholder of the LVMH Group.

In compliance with Italian Stock Exchange regulations, LVMH will submit a Public Purchase Offer at €12.25 per share for the shares held by minority stockholders.

Paolo Bulgari, Chairman of Bulgari S.p.A. and Nicola Bulgari, Vice Chairman of Bulgari S.p.A., said: “We found in Bernard Arnault and the Group he has built all the elements that are required to guarantee the long term future of Bulgari: the ability to gather into one powerful organisation different brands that can grow and develop while preserving both their identity and originality; a culture completely identical to ours, which is characterized by an unceasing quest for quality and excellence; a perfect harmony between family control of the capital, thereby ensuring a long term strategic vision, and an opening towards the stock market which is a stimulus for management while at the same time providing liquidity for the family shareholders.”

Paolo and Nicola Bulgari will remain Chairman and Vice Chairman of the Bulgari S.p.A. Board of Directors respectively, while the Bulgari Family will also be entitled to appoint two representatives to the LVMH Board of Directors.

Furthermore, Francesco Trapani, CEO of Bulgari S.p.A., will join the Executive Committee of LVMH and will assume management of LVMH’s enlarged Watches and Jewellery division in the second half of 2011.

www.lvmh.com