Luxury giant LVMH boosts stake in Italian shoemaker Tod's to 10%

[PARIS] LVMH, the luxury French fashion house, boosted its stake in Tod's to 10 per cent, a move set to fuel speculation that the troubled Italian shoemaker may become a takeover target.

Tod's chief executive officer (CEO) Diego Della Valle sold 2.25 million shares, or 6.8 per cent of capital, for 33.10 euros (S$52.89) apiece to LVMH via a company it controls, Tod's said in a statement Thursday on behalf of Della Valle. The Paris-based owner of Louis Vuitton already held a 3.2 per cent stake.

"The friendship with Diego Della Valle and his family goes back over 20 years," LVMH CEO Bernard Arnault said in the statement. "We are very happy to reinforce further this partnership."

Tod's shares soared more than 20 per cent after it appointed Italian fashion influencer and entrepreneur Chiara Ferragni as a director this month, a development welcomed by some analysts as Tod's seeks to revamp its brand and attract younger customers.

Shuttered stores and lack of tourists due to the pandemic have further widened the gap between the top luxury companies with global footprints and struggling smaller ones.

LVMH closed at a record high on Thursday. The company, which completed the acquisition of the US jeweller Tiffany this year, has been gaining market share in the wake of the crisis sparked by the pandemic.

BLOOMBERG