Pearson agrees deal with LVMH to protect Les Echos

by Jacquie Bowser Brand Republic 23-Jul-07, 15:45

LONDON - Financial Times owner Pearson has agreed on measures to protect the editorial independence of its French business newspaper Les Echos, which is being sold to luxury group LVMH for €240m (£161m).

The two companies said no job cuts would be made for at least three years and existing staff arrangements would be maintained for at least five years.

An 11-member supervisory board, which would include three independent members and the paper's editor-in-chief, would also be created.

Erik Israelewicz, currently deputy editor, is to assume the editor-in-chief role on September 1 following the retirement of Jacques Barraux, and neither he nor any future editor-in-chief may be dismissed by the supervisory board without approval of at least two independent members. Any future editor-in-chief will be nominated by LVMH subject to the approval of the supervisory board.

An editorial independence committee will also be established, consisting of two members of the supervisory board representing LVMH; two of the independent members; and two members appointed by the Society of Journalists. Its role would be to ensure that the values of the ethical charter are upheld.

In a statement Pearson and LVMH, said: "LVMH and Pearson believe that these arrangements provide a sound foundation for the continuing journalistic and commercial success of Les Echos."

LVMH, which is controlled by French billionaire Bernard Arnault, already owns rival French business daily newspaper La Tribune and confirmed it was in negotiations with Pearson for Les Echos last month.

Les Echos journalists subsequently went on strike to protest against a possible sale to LVMH from Pearson, which has owned the paper for the last 20 years.