Bluebell Capital, an activist investor, has acquired a stake in Kering, the renowned French luxury group, and is urging for changes within the company, including a possible collaboration with Richemont, the owner of Cartier, according to sources familiar with the matter. Kering heavily relies on its star brand Gucci, which generates a significant portion of its sales and operating profit. However, the company is under increasing pressure to diversify its revenue streams.
After Bloomberg reported on Kering’s discussions with Bluebell executives and the company’s hiring of advisors to strengthen its position against the activist investor, Kering’s shares experienced a 7% surge on Wednesday. Bluebell has a track record of advocating for change in various companies, such as Glencore, Bayer, Vivendi, Danone, and Richemont.
According to one of the sources, some changes have already taken place at Kering, including a restructuring of the top management team in an effort to revitalize Gucci’s sales. However, Kering declined to comment on these developments.
The possibility of a partnership with Richemont, which has been rumored for years, may have a better chance of success this time considering Kering’s weakened position in terms of market capitalization compared to Richemont. In the past, Richemont rejected a merger offer from Kering, but the circumstances may be different now. Bluebell had previously proposed the appointment of Francesco Trapani, a former executive of rival company LVMH, as a representative on Richemont’s board, but this proposal was rejected by Richemont’s chairman.
The growing influence of activist investors in the luxury industry is evident with Bluebell’s stake in Kering and its push for change. As luxury companies face evolving market dynamics and increased demands for sustainability and diversity, shareholders are seeking to drive transformations within these established luxury groups. The impact of Bluebell’s efforts is yet to be determined, but it is clear that Kering is entering a new era of potential collaborations and restructuring to meet the changing demands of the luxury market.
Useful links:
1. Bloomberg: Bluebell Pushes Kering Into CEO Search
2. Reuters: Gucci Owner Kering Faces Pressure from Activist Shareholder Bluebell
