FB Roundup: Bernard Arnault, David Ellison, Matte family

Bernard Arnault reveals plans to appoint sons to the board of LVMH
Succession speculation continues within the Arnault clan, as French billionaire Bernard Arnault is expected to announce plans to appoint two of his sons to the board of multinational luxury goods conglomerate LVMH.

Currently ranked by Forbes as the second richest person in the world with a net worth of $179.3 billion, Arnault is believed to be ready to nominate his sons, 31-year-old Alexandre and 29-year-old Frederic, ahead of a vote at company’s annual general meeting in April, according to a source.

Frédéric, the second youngest child of Bernard Arnault and his wife Hélène Mercier, joined LVMH’s major timepiece brand TAG Heuer in 2017 and became CEO in 2020, before being appointed CEO of LVMH Watches in January 2024. 

Frédéric’s promotion came, according to a LVMH press release, “after successfully driving the transformation and acceleration of TAG Heuer over the past six years, his new role within the Watches & Jewellery Division will ensure a strong and sustainable growth for the Watch Maisons and reinforce LVMH’s role within the watchmaking industry.” 

Alexandre Arnault, meanwhile, is presently in charge of product and communications at Tiffany & Co.

In 2023, the 74-year-old Bernard Arnault oversaw a shake-up of executive LVMH roles. His 48-year-old daughter, Delphine, was appointed CEO of Christian Dior, while 46-year-old Antoine Arnault was given responsibility for LVMH’s image and communications and made a non-executive chairman of cashmere specialist Loro Piana, which belongs to the company.

Bernard Arnault and his family own about 48 per cent of LVMH shares and about 64 per cent of voting rights.

David Ellison bids to buy Redstone family company
David Ellison, the eldest child of Larry Ellison, the founder of software giant Oracle, has made an offer to buy National Amusements Inc., the parent company of MTV, CBS and Paramount and the holding company of the Redstone family. 

As reported by The New York Times at the end of 2023, the 69-year-old American media tycoon Shari Redstone - who “once waged a bitter battle with her one-time allies to retain control of the company, now appears to be seriously considering relinquishing it” - held talks with David Ellison’s media and entertainment company Skydance Media to buy out Redstone’s stake.

Now, according to Fortune, “Ellison has also had discussions with Paramount about merging Skydance Media into the larger media company after he takes control. Both sides have hired advisers and are exchanging financial information, said the people, who asked to not be identified discussing private conversations.”

Paramount was bought decades ago by Shari Redstone’s father, Sumner Redstone, and has since grown into a global concern with a streaming channel, movie studio and CBS broadcast network forming part of its portfolio.

According to The New York Times, Redstone, who owns a controlling stake in National Amusements, “began holding conversations about a deal earlier this year with parties including technology firms like Amazon, Apple and Netflix, according to two people familiar with the matter.”

Fortune confirms that Ellison “has met with Redstone and tried to convince her that he will be a guardian of the company’s many assets, in particular its namesake studio, a 110-year-old business that produced The Godfather among other classic films. 

“Ellison has worked with Paramount Pictures for years as a financier and producer of projects including the Star Trek film series, the Mission: Impossible movie franchise and the blockbuster Top Gun: Maverick.”

Chile’s Matte family moves into banking with bid for Grupo Security
The billionaire Matte family, a multi-generational Chilean dynasty with assets in forestry, power generation and telecommunications, is said to be looking to “expand its presence in financial services via a merger of its bank operations with a local rival.”

According to a report by Bloomberg, the family’s “financial services company Bicecorp said it agreed to a takeover of Santiago-based Grupo Security via an offer partly in cash and shares. Forestal O’Higgins, a Matte holding company, agreed to pay 285 pesos per share for as much as 20% of Security while Bicecorp would issue new shares of its own to swap for the rest. Bicecorp and Forestal O’Higgins are looking to acquire at least 62% of Grupo Security shares.”

The deal is expected to value Grupo Security at approximately $1.25 billion and Bicecorp at $1.88 billion, according to a note by Credicorp analysts Daniel Mora and Michael Martinez, who recommended that Security shareholders accept the new Bicecorp shares as they offer “the potential for a bigger business that can benefit from the scale and synergies of both groups.”

The Matte family rose to wealth in the 19th Century when Francisco Javier Matte and his wife opened a textile store in Santiago. In 1855, their son Domingo (who fathered 16 children) opened a bank in Valparaíso with two of his sons, Augusto and Eduardo.

Today, the family is headed up by Bernardo Matte Larrain [pictured above], Patricia Matte and Eliodoro Matte, who inherited stakes from their father, Eliodoro Matte Ossa. Their interests include pulp producer Empresas CMPC SA, power producer Colbun SA and telecommunications company Empresa Nacional de Telecomunicaciones SA. The family also own stakes in telecom, banking and shipping firms.