243-244

Chapter 243: Another Corporate Battle

*London, Financial District*

Early morning.

“Boss, here’s the updated acquisition plan we’ve prepared, following your instructions!”

Andre handed over the revised proposal. Over the past few days, he had been shuttling tirelessly between London and Paris, losing weight but brimming with energy, clearly invested in the task.

Milo leaned back in his plush, comfortable executive chair and carefully reviewed the document.

After a while, he smiled with satisfaction and praised, “Excellent! I don’t think it could be any better.”

“Thank you for the compliment, Boss!” Andre replied with a smile.

His relentless efforts—sometimes making three round trips between Paris and London in a single day—had finally paid off. Fortunately, the proximity of the two cities made this possible, or the sheer amount of flying would have been exhausting.

Milo gave Andre specific instructions: “The representatives from Blackburn Bank will be here shortly. Today, transfer all the LVMH shares currently held by our company, except those held by Paris Bank, to Blackburn Bank.”

Blackburn Bank primarily operates overseas, with its European headquarters located in London.

“I expect you to acquire the shares held by the Widen family, as well as those held by the Hennessy and Moët families, within a week—by any means necessary. Work according to the plan and coordinate with Paris Bank, but act separately.”

“You know I can’t stay here much longer. By mid-November at the latest, I must leave because Yahoo is about to go public.”

Andre fully understood. It was already late October, and the boss’s time in Europe was limited.

He exhaled lightly and assured, “Rest assured, my dear boss, you’ll see exactly what you’re hoping for.”

As Andre set his plans in motion, Paris Bank was also ramping up its efforts, driven by the prospect of a lucrative commission.

The bank’s task was to acquire the shares held by the Moët and Hennessy families.

To maximize their chances of success, Paris Bank’s president, Davy Baptiste, sought out his former classmate, Alain Chevalier.

Alain Chevalier was once the CEO of Moët Hennessy and one of the founding figures behind the merger that created LVMH (Louis Vuitton Moët Hennessy).

The name LVMH is an acronym for three prestigious European luxury brands:

- *LV*: Louis Vuitton, the most widely recognized.

- *M*: Moët, a 300-year-old champagne brand with royal endorsements.

- *H*: Hennessy, the world’s most renowned cognac brand.

Chevalier had overseen the "MH" portion of the business.

When people think of LVMH’s founding, Bernard Arnault—a name synonymous with luxury and hailed as the “Napoleon of luxury” in France—typically comes to mind.

However, Alain Chevalier’s name might be less familiar.

This is because, in the dramatic corporate battle that followed LVMH’s founding, Chevalier ended up on the losing side.

Davy Baptiste took on the task of acquiring the Moët family’s shares due to his close relationship with Alain Chevalier.

Years ago, when Chevalier was consolidating Moët Hennessy, Paris Bank provided the crucial backing. Unfortunately, during the process, Bernard Arnault was brought in as a supposed ally but turned out to be a “wolf in sheep’s clothing.”

Arnault ultimately gained control of LVMH, ousting Chevalier in the process.

Baptiste, aware of Chevalier’s enduring resentment over his ousting, felt confident about enlisting his support.

After all, LVMH wouldn’t exist without Chevalier’s vision. He was the one who united the “big three,” only for Arnault to reap the rewards.

Until Milo’s arrival, Chevalier could do little to change this reality. He was merely a skilled manager, powerless against Arnault.

But now, with an American player in the mix, the dynamics had shifted.

Davy Baptiste believed their chances of success were strong. Chevalier still maintained excellent relationships with the Hennessy and Moët families, having facilitated their merger. Back then, both families vehemently opposed Chevalier’s dismissal, but Arnault had allied with the second-largest shareholder, the Widen family, rendering their opposition futile.

On the sunny afternoon of October 22, in the Paris suburbs, Baptiste invited Chevalier for a round of golf.

During a break, Baptiste casually brought up his request, instantly wiping the relaxed look off Chevalier’s face.

“Alain, I need your help. I’d like you to persuade the Moët family to sell their shares to me.”

“Dear Davy, may I ask who has commissioned you to acquire these shares?”

"Has BNP Paribas already transferred its shares?"

Overcome with curiosity, Alain Chevalier quickly asked two consecutive questions, his gaze fixed intently on David Baptiste. His hands unconsciously gripped the chair tightly.

David Baptiste observed this scene, fully aware that Alain Chevalier had never truly let go of his attachment to the LVMH Group.

“Alain, there’s no need to be so tense. Relax.”

David Baptiste spoke with a faint smile.

Alain Chevalier forced a wry smile and shook his head, sighing.

“My dear David, you know everything. I’ve poured so much into LVMH. Under my leadership, it was finally on the right track. But in the end…”

David Baptiste’s smile gradually faded. He nodded slightly, his eyes drifting toward the distance. There, the ground was covered with golden fallen leaves from French sycamores, evoking a deep sense of nostalgia.

Unconsciously, he realized that he and Alain Chevalier had known each other for over twenty years. The latter was now sixty years old.

And himself?

He was already sixty-seven. How many more years did he have left?

For a moment, both men, lost in their own thoughts, fell silent.

After a long pause, David Baptiste collected his emotions and, with a solemn expression, said to Alain Chevalier:

“Alain, I see that you’re still eager to return to LVMH. That makes me very happy. I can tell you that you now have an opportunity to rejoin LVMH and regain control of the company you played a pivotal role in creating.”

“I don’t like Bernard Arnault. That man doesn’t respect me. He thinks that by cozying up to the Americans, he can do whatever he pleases. He pushed you out and left BNP Paribas without even a single seat on the board. When I think of the past, of how enjoyable our collaboration was when you were around…”

“Now, Alain, the opportunity has arrived. Stronger Americans have set their sights on LVMH, but they don’t want to work with Bernard. They’ve chosen BNP Paribas instead. And I recommended you to them. Alain, I believe this might be your last chance to return to LVMH.”

Hearing this, Alain Chevalier, knowing that David Baptiste never spoke frivolously, grew serious.

If David was saying this, it was very likely true.

Could it be that he really had a chance to return to LVMH?

Alain Chevalier’s expression grew grave. Fixing his gaze on David Baptiste, he asked:

“My dear David, I need more concrete information to make a decision. That way, when I approach the Moët family, I can make them believe in me even more.”

Sensing that Alain Chevalier was already swayed, David Baptiste’s lips curved into a faint smile.

He replied with a soft laugh:

“You should have heard of this company—Paladin Investments. It’s an American firm, a Wall Street company. But if you haven’t, that’s fine. I’m sure you’ve heard of its owner: Milo Blackburn.”

If David Baptiste had only mentioned Paladin Media or Paladin Investments, Alain Chevalier might not have recognized them. The French, with their characteristic confidence, often didn’t concern themselves with international affairs. Many still considered France the center of the world—a legacy of the Sun King era, when it truly was.

They didn’t speak English, they didn’t like the British, and by extension, weren’t fond of Americans either.

So even among business elites with limited international exposure, it was common not to have heard of companies like Paladin Media or Paladin Investments.

But Milo Blackburn was a name most French people knew, thanks to Forbes’ years of publishing global wealth rankings.

The French might not know who the richest American was, but they certainly knew who the richest person in the world was.

World’s wealthiest man, Milo Blackburn. Alain Chevalier certainly recognized the name.

Alain’s expression shifted slightly. He nodded and said:

“The world’s richest man? I remember he’s also a media tycoon in the U.S., right?”

David Baptiste nodded with a smile.

“That’s right, it’s him. I’ve confirmed everything with them. Acquiring LVMH is just the beginning. Their minimum goal is to dominate the luxury sector, and they’re even exploring other industries.”

“Do you think this platform is enough to showcase your talents?”

Alain Chevalier fell silent again, his gaze flickering with uncertainty.

After a long pause, he finally spoke in a hoarse voice:

“My dear David, if possible, I’d like to meet the man behind all this.”

Realizing something, he quickly added:

“I only want to understand his intentions. As for his dealings with your bank, I won’t interfere.”

Hearing this, David Baptiste smiled, thinking to himself that Alain Chevalier had good emotional intelligence.

He also believed that Alain could convince the Hennessy and Moët families—at least the Moët family would likely listen to him. His task was as good as done.

David Baptiste nodded and said:

“While I believe he’ll agree to meet you, it ultimately depends on their decision. I’ll communicate with Paladin Investments and get back to you.”

This was only natural, so Alain Chevalier replied softly,

“Alright, thank you for your trouble.”

“No trouble at all.”

“By the way, how’s your rest going? Shall we continue?”

“Of course!”

With that, the two stood up, golf clubs in hand, and walked toward the course.

However, after their conversation, both men were preoccupied, making it hard to play as casually as before.

Compared to Alain Chevalier, David Baptiste’s mood was noticeably lighter.

After all, they had known each other for over two decades, and he had a good sense of Alain’s current mindset. This was why he didn’t directly approach the Hennessy and Moët families but first worked on persuading Alain Chevalier.

Though Alain was merely a professional manager and had been ousted from LVMH, his contributions to its creation were undeniable. He commanded great respect within the company and had significant influence over the Moët family.

His exceptional abilities were also evident—if he weren’t so capable, Bernard Arnault wouldn’t have spent 15 million francs to get rid of him. Arnault feared that Alain’s presence as a co-founder of LVMH would undermine his control of the group.

David’s strategy was clear: winning Alain’s support would significantly lower the difficulty of acquiring the shares held by the Hennessy and Moët families.

It was widely known that since Bernard Arnault gained full control of LVMH, the Vuitton, Hennessy, and Moët families had been sidelined. Apart from holding non-dividend-yielding shares, they had no real influence in the company.

This was absurd, considering the company’s name was a combination of their family names.

Unlike other European luxury brands like Hermès and Chanel, whose founding families retained full ownership and control, these three families had become little more than shareholders in name only.

Convincing Alain Chevalier, a figure with significant sway over these families and LVMH, would make the acquisition process much smoother.

David Baptiste believed that it was now up to the world’s wealthiest man to seize this golden opportunity.

(End of Chapter)

Chapter 244: The LVMH Group

Along the roadside adjacent to the Champs-Élysées, Milo stepped out of the car, glancing around at the dazzling splendor.

This was a place of refined elegance, shaped over millennia by the hands of masters. Every detail exuded sophistication.

The InterContinental Paris Hotel, nestled amidst the luxury boutiques near the Arc de Triomphe and Champs-Élysées, was in close proximity to renowned brands like Dior.

Not far away stood the Arc de Triomphe, and the Eiffel Tower—a near-symbol of France’s spirit—was within sight.

This was undoubtedly the best location to appreciate the city’s beauty, immerse oneself in French luxury, and experience the most thoughtful, delicate hospitality.

Just two hours ago, Milo had still been in London.

From London to Paris, Milo took the train this time—the Eurostar, faster than a plane.

It had to be said: in this era, both technology and culture undeniably had the upper hand in the West.

This time, Milo came to Paris low-key, mainly because the second phase of acquiring the LVMH Group was nearing its conclusion.

The final step remained: consolidating all obtainable shares and directly challenging Bernard Arnault.

After settling into the hotel and resting briefly, the afternoon passed.

Around 3 PM, Milo arrived in Paris’ 8th arrondissement near Place de la Concorde, at one of the oldest mansions housing the three-Michelin-star restaurant, *Pavillon Ledoyen*.

Here, Milo met Alain Chevalier.

“Mr. Blackburn, please forgive me—my English is not very good,” Alain Chevalier said politely after a brief exchange of pleasantries.

If anyone disliked English the most, it was undoubtedly the French.

The French had a strong sense of pride in their language and cultural traditions. They regarded French as a beautiful language—arguably the world’s best in their eyes.

Historically, the rivalry and hostility between England and France had also contributed to some French people's negative attitudes toward English, which they saw as a symbol of Britain. Using English was sometimes viewed as a betrayal of French culture and language.

Amusingly, many French people who actually knew English would pretend not to understand it when foreign tourists asked for help.

However, someone like Alain Chevalier, a business elite, obviously spoke English—though, as he admitted, not fluently and with a heavy accent.

Milo smiled and shook his head, replying, “That’s perfectly normal. Unless someone specializes in languages, few are fluent in a second language. For instance, I can’t speak French at all.”

After exchanging pleasantries, the negotiations began.

“Mr. Chevalier, Baptiste told me you’d like to know my plans for the future of LVMH?” Milo asked with a smile after taking a sip of coffee.

Alain Chevalier focused his attention, though it didn’t matter much to him.

What he truly wanted was to return to LVMH and oust Bernard Arnault.

Of course, he couldn’t admit this outright. With a serious expression, Alain Chevalier said, “Yes. Although I’m no longer a shareholder and have been pushed out, I’ve invested enormous effort and dedication into LVMH. It’s like my child—not biologically mine, but I sincerely hope it has a bright future.”

Milo didn’t care whether Alain Chevalier’s feelings for LVMH were genuine.

He was results-driven.

As long as the outcome was favorable, Chevalier’s emotions were irrelevant.

Shrugging, Milo said, “Mr. Chevalier, if that’s how you feel, then my acquisition is the best path for LVMH.”

Noticing that Chevalier remained silent and attentive, Milo continued, “I’m very optimistic about the future of the luxury goods market—or as you French prefer to call it, the ‘premium market.’

“Although LVMH is already an industry giant, strong competitors remain.

“For instance, after LVMH’s merger, the Pernod Ricard Group emerged from the fusion of Pernod and Ricard, forming a formidable rival.

“Others include the Castel Group, L’Oréal, Richemont, and more.”

“How long do you think it will take for LVMH to surpass these companies and secure an unshakable position as the leader in the luxury market?”

“Moreover, as I understand it, LVMH’s stock price has dropped about 30% since last year. Don’t you think Bernard Arnault has made some mistakes?”

Between 1997 and 1998, LVMH faced an economic crisis while competitors aggressively expanded.

Under such pressure, LVMH’s shares plunged 38% in just four months.

The current 30% drop meant another 10% decline was likely.

This was why Milo targeted LVMH—it was arguably facing its toughest period.

If the company overcame this hurdle, Bernard Arnault would soar.

At that point, acquiring LVMH would not only be far more challenging but also astronomically expensive.

Faced with Milo’s question, Alain Chevalier remained silent.

Milo smiled faintly and pressed on:

“I know you have high hopes for LVMH. You don’t want to focus solely on men’s products, which is why you led the acquisition of Boussac’s perfume business. Compared to alcohol, luxury goods and cosmetics offer greater profits and market potential.

“But how much time do you think it will take to surpass giants like L’Oréal and Hermès?”

Chevalier’s expression grew more serious. Yet hearing this, his heart stirred with excitement. Could it be...?

Sure enough!

Milo’s subsequent words confirmed Chevalier’s suspicions, bombarding his mental defenses with explosive revelations.

“Paladin Investments aims to acquire LVMH for one purpose: to make it the undisputed leader in the premium industry!

“Acquiring LVMH is just the first step. I’m also in the process of acquiring an Italian luxury company, and the deal is already more than halfway done.”

“Once LVMH is acquired, the first order of business will be to merge the two companies.”

“Perhaps you’ve heard of this company—Gucci Group. I already hold 53% of its shares.”

“After the merger, you’ll be the CEO. I trust your capabilities, and I don’t have the time or energy to personally manage a company. I’m not Bernard Arnault.”

“In my plan, LVMH must acquire at least 20 additional luxury brands. As my CEO, you won’t need to worry about funding. Whether it’s tens or hundreds of billions of dollars, I can secure it all within a week!”

“I don’t believe in empty boasts.”

Milo finished his coffee calmly and waited for Alain Chevalier’s reaction.

Suddenly confronted with such monumental information, Chevalier needed time to process it.

Even though Alain Chevalier was already in his sixties and had experienced the ups and downs of both politics and business, he still found it hard to remain calm in the face of the tempting vision Milo painted.

This vision was too vivid and enticing to ignore. Most importantly, Milo might actually be able to make it a reality.

After all, he was the richest man in the world, with Forbes estimating his net worth at over $100 billion! What does $100 billion mean? At the current exchange rate, that’s around 700–800 billion francs! For context, France’s GDP last year was $1.61 trillion. This young man’s personal wealth was approximately 8% of France’s GDP from the previous year.

After a long pause, Alain Chevalier took a deep breath, suppressing the last ripple of excitement within him. He solemnly asked the most crucial question:

“Mr. Blackburn, how long do you expect it will take to achieve these plans?”

Milo smiled slightly, locking eyes with Alain Chevalier before replying:

“Today is October 25th, and there are only 66 days left until 1998. I hope that within the next year, through a series of acquisitions, we can establish LVMH as the undisputed leader in the global luxury goods industry. If it can be done even sooner—say, in six months or three months—that would be even better. We’d then have more time to integrate, consolidate, and solidify our market position.”

“Mr. Chevalier, what do you think? Are you willing to personally take part in this?”

Alain Chevalier was silent for a moment before he smiled bitterly and spread his hands.

“Mr. Blackburn, I don’t seem to have a reason to say no.”

Milo smiled and extended his hand. Alain Chevalier shook it firmly.

“Welcome aboard!”

“It’s my honor.”

After they let go of their handshake, Alain Chevalier suddenly appeared troubled, as if he had something on his mind. Milo, sensing this, asked:

“Alain—is it okay if I call you that?—is there something else on your mind?”

Alain Chevalier nodded slightly, took a deep breath, and said:

“Mr. Blackburn, there’s something I must say. It involves my principles and professional ethics.”

“Please, go ahead.”

Milo gestured for him to continue, smiling warmly.

“Although I helped build LVMH, the Moët family also played a big role in my success. The reason I didn’t refuse after Mr. Baptiste approached me, and instead asked to meet with you, is largely due to the Moët family’s attitude toward the company. They aren’t particularly interested in running it—they care more about the money. That’s also why they initially hired me to manage the company.”

“And after I was forced to leave, Bernard drove them off the board as well. Over the past ten years, they’ve only received dividends once. They’re deeply dissatisfied with Bernard.”

“The same goes for the Hennessy family.”

“So!”

He looked at Milo intently.

“I hope to personally negotiate with these two families and convince them to sell their shares to you.”

This was Chevalier’s pledge of loyalty. By helping Milo acquire the shares held by these two families, he aimed to earn Milo’s full trust.

Moreover, Alain Chevalier was confident in his ability to achieve this.

Aside from the Vuitton family, who had a close relationship with Bernard Arnault, the other two families had been at odds with him for years.

Since 1987, when the merger that created LVMH was completed, the three founding families—along with Chevalier—had been locked in internal strife. To undermine Chevalier, Henry Racamier (son-in-law of Henry Vuitton) brought in Bernard Arnault as an investor. What was meant to be a partnership turned into letting the wolf into the fold.

Eventually, Bernard ousted Henry Racamier, Chevalier, and the other families from the board.

Bernard Arnault, driven by strong ambition and a desire for control, began consolidating his power after stabilizing the company. By using dividends and other financial means, he gradually increased his shareholdings and placed his own people in key positions, aiming to seize complete control of LVMH.

For Chevalier and the others, Bernard was the enemy. Chevalier couldn’t wait for Milo to buy out the other families and oust Bernard once and for all.

While the Vuitton family might be a challenge due to Bernard’s concessions to them, the Moët and Hennessy families would undoubtedly support removing Bernard.

Confidently, Alain Chevalier made his pledge: “Mr. Blackburn, I’ll take care of this. Just watch and see.”

Milo smiled and said, “That’s why I sought you out, dear Alain. I trust you can make it happen. This benefits both of us.”

Chevalier let out a sigh of relief and smiled. “Mr. Blackburn, consider it done.”

Milo chuckled. “I trust your abilities!”

---

After securing Alain Chevalier’s support, Milo’s acquisition team, led by Paris Bank, approached the Moët family directly.

The Moët family, in turn, sought Chevalier’s advice.

Chevalier, knowing the family well, remained neutral, objectively analyzing the pros and cons while subtly amplifying their dissatisfaction with Bernard Arnault. He then left the decision in their hands.

Meanwhile, Paris Bank leveraged its resources, targeting the Moët family’s other business interests. By offering enticing incentives and favorable terms, along with a generous purchase price, the Moët family agreed to sell their shares.

Similarly, Paladin Investments used a “franc offensive” to break down the Hennessy family’s resistance. Without informing anyone else, the Hennessy family sold their shares to Paladin Investments.

By the end of the weeklong campaign, Milo’s second phase of operations had yielded the expected results.

Except for the Vuitton family, which maintained close ties with Bernard Arnault, the rest of the shares were now in Milo’s hands:

- 8.5% from the Hennessy family.

- 8% from the Moët family.

- 31.3% acquired through secondary markets, bank transfers, and institutional deals.

Milo now holds 47.8% of LVMH Group's shares.

Proportionally, this surpasses the 43% held by Bernard Arnault and the Vuitton family.

However, there’s an issue. While the Vuitton family and Bernard Arnault hold only 43% of the shares, they control over 65% of the voting rights. Therefore, additional strategies are required to gain full control.

This is why Milo has been aggressively acquiring and taking over LVMH Group's debt.

In addition to the shares, Milo now holds around 50% of LVMH Group’s external debt, most of which consists of near-term corporate bonds maturing within six months to a year, with minimal remaining interest.

This debt amounts to approximately $2.5 billion, and combined with the $3.35 billion spent on acquiring 47.8% of the shares at a premium, Milo has invested nearly $5.9 billion in LVMH Group so far.

But all of this is worth it because it will soon allow him to control the world’s third-largest luxury goods giant, with unlimited potential.

---

*Inside the Paladin Investments conference room.*

Milo, André, and the acquisition team gathered together.

André reported the latest updates to Milo.

Their successive victories and the clear advantage they had gained filled André with joy, and his voice reflected his excitement as he presented the updates.

"Boss, our company, along with Blackburn Bank and BNP Paribas, now collectively holds 48% of LVMH Group’s shares."

"At this point, only a small portion remains in the hands of individual investors."

"However, Bernard Arnault seems to have noticed something is off. He has asked BNP Paribas to disclose their holdings in LVMH Group."

"According to French financial regulations, they will be required to publicly disclose the holdings by tomorrow at the latest."

After listening to André’s report, Milo nodded slightly. His sharp gaze swept across the room as he commended everyone.

"Thank you all for your hard work during this time!"

"Thanks to everyone’s joint efforts, this acquisition is on the verge of success."

"Tomorrow morning, recall all shares held by Blackburn Bank and those held on our behalf by BNP Paribas. After that, publicly disclose the holdings. Following the disclosure, as the largest shareholder and citing the fact that the free-floating shares are below 25%, immediately apply for a trading suspension. Simultaneously, assign personnel to take control of LVMH Group."

"If Bernard Arnault and the Vuitton family attempt to use their voting rights to block us, we will simultaneously file a complaint with the French government and demand repayment of the corporate bonds within the stipulated time frame."

"André, you will be responsible for organizing the team and assigning tasks. If there is a manpower shortage, recruit additional personnel promptly. Ensure that the plan is executed on time tomorrow."

"This is our first battle in Europe, and I want it to go smoothly. Do you understand?"

As Milo finished his sentence, he deliberately raised his voice, his sharp gaze scanning everyone in the room.

Everyone straightened their posture and responded loudly, "Understood!"

"Does anyone have any questions?" Milo asked again.

After scanning the room and seeing no one speak up, he directly announced the end of the meeting.

"No questions? Then the meeting is adjourned!"

With that, Milo left the conference room with steady steps.

Having been busy in Paris for several days, he was finally reaching the last step. He planned to take some time to enjoy himself in Paris once this was over.

After Milo left, André began breaking the tasks down into finer details...

*(End of Chapter)*