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Luxury goods giant Richemont on Monday reiterated its request to its shareholders to reject the candidate of London-based fund Bluebell Capital Partners at the upcoming annual general meeting on 7 September. The Swiss luxury giant considers this candidate “inappropriate” for election to the board, because of his long-standing proximity to the LVMH group, one of Richemont’s main competitors, and its shareholders.
It should be recalled that last July, Bluebell had asked Richemont’s board of directors to welcome a member representing holders of “A” shares and called for a refocusing on its core activities. Indeed, the London-based fund is seeking the appointment of Francesco Trapani, former director of the Italian luxury house Bulgari and co-founder of Bluebell.
However, Richemont continues to oppose this appointment and is arguing for the election of its director Wendy Luhabe, a current board member since 2020, to represent the “A” shareholders.
The Geneva-based group also recommended that shareholders reject Bluebell’s proposal that all directors be classified as representing either A or B shares, and that the number of directors from both shareholder groups be equal.
Until now, Richemont had not considered it necessary to elect a member specifically representing A-shares to the board, as the company considers that its directors should act in the interests of all shareholders. However, Swiss law gives Bluebell the right to request such an appointment, says Richemont.
So, for the first time in the group’s history, the holders of “A” shares will have to vote for someone to represent them on the board. However, Richemont does not consider that Bluebell, “a fund manager with a small stake in the company”, is legitimate to have a representative of all A-shareholders, says Richemont Chairman Johann Rupert in his letter to shareholders.
Francesco Trapani and his past with LVMH
Francesco Trapani was the CEO of Bulgari when it was acquired in 2011 by global luxury leader LVMH. He also served on the board of LVMH from 2011 to 2016 where he was also an advisor to Bernard Arnault, CEO and Chairman of the group.
“LVMH is one of the main competitors of our company,” Johann Rupert wrote in a letter to shareholders.
“The board cannot responsibly recommend to shareholders to let a person who has a long history of association with this group – as well as a personal relationship with the major shareholder of this group – become a director of our company and intervene in the decision-making process of our company,” he added.
Richemont’s share capital consists of 522 million registered “A” shares worth 1 franc and as many “B” shares worth 10 cents each. The latter are held by the family holding company of the company’s Chairman Johann Rupert, which thus owns 10% of the total share capital.
Read also > Richemont and Bluebell battle over a candidate for the Swiss luxury group’s board of directors
Featured photos : © Richemont[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Luxury goods giant Richemont on Monday reiterated its request to its shareholders to reject the candidate of London-based fund Bluebell Capital Partners at the upcoming annual general meeting on 7 September. The Swiss luxury giant considers this candidate “inappropriate” for election to the board, because of his long-standing proximity to the LVMH group, one of Richemont’s main competitors, and its shareholders.
It should be recalled that last July, Bluebell had asked Richemont’s board of directors to welcome a member representing holders of “A” shares and called for a refocusing on its core activities. Indeed, the London-based fund is seeking the appointment of Francesco Trapani, former director of the Italian luxury house Bulgari and co-founder of Bluebell.
However, Richemont continues to oppose this appointment and is arguing for the election of its director Wendy Luhabe, a current board member since 2020, to represent the “A” shareholders.
The Geneva-based group also recommended that shareholders reject Bluebell’s proposal that all directors be classified as representing either A or B shares, and that the number of directors from both shareholder groups be equal.
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Luxury goods giant Richemont on Monday reiterated its request to its shareholders to reject the candidate of London-based fund Bluebell Capital Partners at the upcoming annual general meeting on 7 September. The Swiss luxury giant considers this candidate “inappropriate” for election to the board, because of his long-standing proximity to the LVMH group, one of Richemont’s main competitors, and its shareholders.
It should be recalled that last July, Bluebell had asked Richemont’s board of directors to welcome a member representing holders of “A” shares and called for a refocusing on its core activities. Indeed, the London-based fund is seeking the appointment of Francesco Trapani, former director of the Italian luxury house Bulgari and co-founder of Bluebell.
However, Richemont continues to oppose this appointment and is arguing for the election of its director Wendy Luhabe, a current board member since 2020, to represent the “A” shareholders.
The Geneva-based group also recommended that shareholders reject Bluebell’s proposal that all directors be classified as representing either A or B shares, and that the number of directors from both shareholder groups be equal.
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