Evidence receipt / evaluation
Published · transcript-backedDavid Rosenthal: evaluation
21 Feb 2023 Acquired LVMH
“You said that $800-ish million, that's the capital that he had come up with through this war chest that he was doing. But the strategy that Arnault and Lazard design here is so brilliant because he retains majority control in each of these entities.”
Source trail
Everything needed to verify it.
- Speaker
- David Rosenthal
- Attribution
- Verified speaker
- Claim type
- evaluation
- Recorded
- 21 Feb 2023
- Publisher
- Acquired
- Episode
- LVMH
Transcript context
…Enter Bernard Arnault's majority ownership of an entity that owns a minority stake of LVMH. The market cap around this time of LVMH is around $6 billion. That's 60% of 24% of something that's worth $6 billion, which is about $860 million is the value of his new stake in LVMH. You said that $800-ish million, that's the capital that he had come up with through this war chest that he was doing. But the strategy that Arnault and Lazard design here is so brilliant because he retains majority control in each of these entities. It doesn't matter that he only owns 60% of this new Jacques Robert JV and Guinness owns 40%. Arnault controls it. Once it's inked, once the capital is in, Guinness' capital is now just leverage for Arnault. Sure. It leverages a 24% stake of LVMH. Why does that matter? Why is that spelled doom and gloom for Racamier?…
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