HOLLAND: Gucci - Printemps Redoute Strategic Alliance Intact
Domenico De Sole, president and chief executive of Gucci Group N.V. (NYSE: GUC; Amsterdam) told analysts and investors today that Wednesday's decision of the Supreme Court of The Netherlands leaves Gucci's strategic alliance with Pinault Printemps Redoute S.A. (PPR) intact. The decision placed no restrictions on Gucci's ability to pursue its multi-brand strategy, a strategy that Gucci intends to continue to pursue aggressively.Mr De Sole said that "the Supreme Court eliminated findings of mismanagement against Gucci on the grounds that the Enterprise Chamber reached its conclusions without conducting a formal investigation of the matter. The Supreme Court did not order the Enterprise Chamber to conduct a new investigation and nor did it suggest that a formal inquiry should be commenced. As a result of this decision it is up to LVMH to decide if it wants to return to the Enterprise Chamber and seek a fresh hearing. Should such an action be brought by LVMH, Gucci strongly believes that the Enterprise Chamber would uphold the PPR strategic alliance as it did last year."He observed that the Enterprise Chamber is the same Court that previously upheld the strategic alliance, which has been a great success, driving Gucci's multi-brand strategy and delivering enormous shareholder value. Mr De Sole also observed that independent shareholders have endorsed PPR's nominees on Gucci's supervisory board and the strategic alliance in two interim shareholder votes.Mr De Sole said: "Gucci and PPR have forged an excellent partnership that continues to deliver outstanding results for the benefit of all shareholders. Gucci will pursue its multi-brand strategy with PPR's support."
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