Bernard Arnault is a French business magnate, investor, and art collector. Bernard Arnault got Luois Vutton by ousting Henry Racamier, president of Louis Vuitton in 1990 by investing through a joint venture with Guinness PLC.
In 1987, Bernard Arnault co-founded LVMH with Henry Racamier, president of Louis Vuitton. Arnault provided $1.5 billion in July 1988 to form a holding company with Guinness that held 24% of LVMH’s shares
In response to rumors that the Louis Vuitton group was purchasing LVMH stock in order to form a “blocking minority,” Arnault spent $600 million to purchase 13.5% more of LVMH, making him the company’s largest shareholder.
The idea behind LVMH was that the conglomerate would be too large for a single hostile raider. The premise, however, failed to account for internal takeover attempts.
When Arnault’s strategic vision differed from that of Louis Vuitton’s president, Henry Racamier, the flaw became too large to ignore.
In January 1989, he spent another $500 million to gain control of 43.5% of LVMH’s shares and 35% of its voting rights, achieving the “blocking minority” required to prevent the LVMH group from being dismantled.
He then turned on Racamier, deposed him, and removed him from the board of directors. He was unanimously elected chairman of the executive management board on January 13, 1989.