// Richemont shares rose after news of a possible merger with Kering
// Richemont had rejected the informal offer back in January
// A cash-and-shares proposal to merge had been made directly by Kering chief executive to Richemont chairman
Richemont shares rose after the Cartier owner was approached by French luxury goods group Kering for a potential merger in January.
Richemont had rejected the informal offer back in January.
A cash-and-shares proposal to merge had been made directly by Kering chief executive François-Henri Pinault to Richemont chairman and controlling shareholder, Johann Rupert.
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Rupert, who said in November he had no plans to sell, was unsatisfied with the terms and did not submit them to Richemont’s board.
Speculation over a possible tie-up between Richemont and Gucci owner Kering have been circulating for years.
Kering has a market capitalisation of €74 billion versus Richemont’s 47 billion Swiss francs.
Rupert’s family investment vehicle owns 10 per cent of Richemont’s equity, but has 51 per cent of voting rights due to a complex dual share scheme.
Kering is 41 per cent owned by Artemis, the holding company controlled by the Pinault family.
Richemont’s shares were 3.8 per cent higher while Kering’s shares fell 1.4 per cent following the news of the merger.