LVMH in negotiations to buy Les Echos

by Jacquie Bowser, Brand Republic 21-Jun-07, 14:25

LONDON - Luxury goods group LVMH, owner of brands including Louis Vuitton, Givenchy and Donna Karan, has confirmed it is in negotiations with Financial Times owner Pearson to buy its French business newspaper Les Echos.

LVMH already owns rival French business daily newspaper La Tribune and plans to meet La Tribune's workers committee to discuss the consequences of buying Les Echoes.

In a statement, an LVMH spokesperson said: "Should the transaction proceed, LVMH intends to invest in Groupe Les Echos and grow its leading French business and financial titles. LVMH has always considered editorial independence as being of the utmost importance as it contributes to the credibility, legitimacy and success of any newspaper.

"If the sale of Les Echos takes place, LVMH would include specific provisions in the agreement to ensure this editorial independence."

Les Echos journalists went on strike on Tuesday to protest against a possible sale to LVMH, which is controlled by French billionaire Bernard Arnault.

Groupe Les Echos also comprises Lesechos.fr, the online arm of the paper; Enjeux, a business magazine; and other specialist financial information services.

In 2006, the group contributed €126m of sales and €10m of operating profit to Pearson.

Pearson has owned Les Echos for 20 years but earlier this week the publisher was reported to be holding discussions with NBC owner GE about launching a counter bid for The Wall Street Journal, which is currently subject to a takeover attempt by Rupert Murdoch's News Corporation.