French billionaire Arnault cuts ties with Lagardere heir

Luxury goods billionaire Bernard Arnault has effectively cut ties with Paris Match publisher Lagardere’s heir and boss, leaving the media group more exposed to takeovers.

France’s richest man, known for running Louis Vuitton owner LVMH, came to Arnaud Lagardere’s aid last year with an investment to help fight off an activist and mop up his debts.

But that bet turned sour when another media tycoon, Vincent Bollore, took an interest and became top shareholder with 27 per cent of the Lagardere conglomerate, which also operates in travel retail and publishing and owns influential newspapers.

Lagardere confirmed that Arnault’s Agache investment firm was exiting Lagardere’s personal holding company and instead raising its direct stake in Lagardere to 10 per cent.

Shareholder agreements between Arnault and Arnaud Lagardere will be ended, Lagardere said in a statement late on Wednesday.