National Tide 1980.

"Okay, the next big news about a well-known company is that Henri Lacamier, the current board member of LVMH and former CEO of LV, is dissatisfied with the current CEO of LVMH, Bernard Arnault, for his company's management methods and excessive interference in the LV brand. Today, when he spoke on stage at the LV Fall Conference at Paris Fashion Week, he publicly expressed his dissatisfaction with the decision-makers of LVMH. He believes that some of the new product designs this year were interfered with by Bernard Arnault and did not reflect LV's brand expertise at all. The conference was also simple and vulgar, with no sense of innovation. He even blasted his own company's board of directors for being blind and allowing an amateur who builds houses to do whatever they want, so that LV's style is getting worse and worse, and its products are getting more and more tacky. The secular aesthetics have made LV almost the same as a second-rate brand..."

"At the same time, we also noticed that LVMH's stock price plummeted by 3% in today's stock market. There are rumors that the unusual movement of LVMH's stock price today is due to disputes within the LVMH Group. Henri Lacamier, the heir of LV, was dissatisfied with the retirement plan submitted by Bernard Arnault, the actual controller of LVMH, to the board of directors at the age of 70. In order to avoid withdrawing from the board of directors due to the new system and completely losing control of the family brand, he is planning to sue Bernard Arnault through legal proceedings. He claims that the current top decision-maker of LVMH has engaged in considerable illegal activities in the management and operation of the group company, and he also intends to use this as a reason to apply for a re-splitting of the LVMH Group..."

"Okay, let's connect with our off-site reporters and see what the guests at the LV autumn press conference today think about this sudden incident in the fashion industry."

On the glowing TV screen, as the host of the French news channel finished his on-site report, the TV camera switched to the LV autumn press conference.

The reporter on the sidelines of the news program briefly introduced the situation at the scene and quickly handed the microphone to a pot-bellied man.

The fat man in the middle who was asked for his opinion is, according to what the reporter just said, the executive vice president of LVMH.

"Oh, this press conference is really a disaster today. Henry is crazy and talking nonsense. His performance today is so disgraceful. I used to respect his artistic style and his identity as the inheritor of the LV brand, but now I am deeply disappointed in him. This guy is simply an egomaniac, and his accusations against Mr. Arnault are purely prejudice. You know, there will be some opposition to any product of every brand, but it is normal to have controversy, because as a commodity, it is necessary to find a balance between artistic and commercial value. So in any case, he should not ruin the reputation of his company on such an occasion. I think his words and deeds today are vulgar, and he completely hurt the feelings of all of us. I mean, everyone knows the importance of this press conference, and many people in LVMH have devoted their efforts to it. We worked hard, but he laughed at us. Is this a manifestation of education?..."

The camera on the TV screen turned again, and the reporter on the sidelines continued, "Well, let's hear other people's opinions."

This was followed by interviews with several on-site guests.

Alain Delon was holding up a glass of champagne. "You ask me what I think? I don't know. What happened today was unexpected to everyone. To be honest, I have no opinion on LV's product design. After all, it is something women like. I simply didn't expect that there were so many contradictions within LVMH. I am very worried that this brand that has maintained its honor for hundreds of years will decline because of this. This is a luggage brand like a pearl in our France. After all, people who have run a business know that for any company, no matter how excellent its products are, the stability and unity within the company are the most important. Isn't it? I am just glad that I didn't buy too many LVMH stocks. God, I just hope that the stock market will not react too strongly to this matter, so that I can sell it with a smaller loss tomorrow..."

Catherine Deneuve came over on her own initiative. Her face was pink and she seemed to have drunk too much champagne, so she was very blunt and even unscrupulous in talking to the camera.

"Oh, I have to say. What happened today finally made me understand why I don't like some of LV's new products this year. I'm afraid they are indeed the work of amateurs. I don't care what others say. Anyway, from the perspective of a user like me, I hope that the things I use are full of creativity and design. I can only say that if this matter is really as I think, and the designer's right to create is deprived because of the internal struggle for interests in the company, it is really disappointing. The fashion industry is not that simple. It is not that good things that people like can be created by adding high-end materials to brands. The key is taste and creativity. You can think about it. If a fashion brand does not have a soul figure who can support it, or if this brand has to impose many restrictions on creation and considers everything from practicality and commerciality, then this brand will have no practical significance. This is also why I liked Dior in the past, and now I have become a fan of Saint Laurent. The answer is the designer..."

It was the afternoon of Thursday, October 1987, 10.

The location is Bernard Arnault's office at LVMH headquarters.

The only people in the room at this time were Bernard Arnault himself and his financial backer from Lazard Bank, Frank Mayer.

They watched the reports on the news channel together. Needless to say, their expressions were not very good at this moment.

"Haha, you actually played this little trick on me."

Bernard Arnault sneered at his partner sitting opposite him with disdain, "Henry is now an old madman at the end of his rope. I thought he would know his place and retire honestly. I didn't expect he would do something like this to disgust me..."

"That's true." Frank Meyer agreed immediately. "This guy actually slandered his own brand in public. This will greatly shake the public's confidence in LVMH. You have seen those remarks. If even those celebrities have doubts about LV products because of this, more people will be influenced by them. Once this matter ferments, it will be terrible..."

"Assholes, Alain Delon and Catherine Deneuve are actually against me? As guests, they dared to slander the reputation of LV. If I knew who invited them, I would definitely fire them. And that Henri Lacamier, he is simply courting death. There is no need to wait until the proposal to retire at the age of 70 is passed. Tomorrow I will convene a board meeting and propose to suspend him and completely prohibit him from participating in any business activities related to LV. All board members will agree with my decision."

Bernard Arnault continued to be indignant and complained to his financial sponsor.

However, Frank Mayer was not interested in the power struggle within his company; he only cared about his own investments.

"Don't be angry, these are just small matters. The most urgent task is to make amends for this matter as soon as possible, try to recover the impact, and maintain the stock price. We must not let this kind of thing go on. We have worked hard to get things to this point. Now the stock price is high, and you have obtained absolute controlling rights. As long as you persist, you will win. No one will have sufficient financial resources to compete with you for bargaining chips. According to LVMH's current revenue situation, the third quarter report will be enough to maintain the current stock price once it is released at the end of the month, so the important thing is that no new changes can happen now. As long as the stock price can be stabilized, you can slowly kick out those who dislike you from the company, and then completely digest the fruits of your victory."

"Yes, I am aware of that." Bernard Arnault nodded, "but you don't have to worry about it, I am capable of doing this. I will hold a press conference tomorrow to clarify the matter. My authority in the board of directors is already deeply rooted, and the public will see the unified opinion of the LVMH board of directors through the media. As for outstanding designers, it is not difficult to deal with them. People say I am an outsider, but as long as I am willing to spend money, I can hire experts. No matter how famous a designer is, I can tie him to the chariot of LVMH. You should understand that Dior clothing was revitalized by me in this way." "Then you shouldn't be careless." Frank Meyer shrugged and did not comment. "I have to remind you that you are now the boss of a listed company, and the impact of stocks on market value is very important. The stock price itself is enough to reflect the public's confidence in you. If the stock price falls, the public will lose more confidence. I have seen the stock market today. The turnover rate is almost 4%. It has been a long time since such a high transaction volume. In my experience, this is not a good sign. There must be a large sell order. So I can't help but worry about whether your opponent intends to use this desperate approach to lower the stock price and deliberately short sell. You know, Henry has 30% of the shares, and his friend Pierre Cardon also has some shares. If they want, they can really bring the stock price down, and then we will have to bear the risk of huge floating losses..."

After hearing what he said, Bernard Arnault could not help but become suspicious. "You mean, this is a conspiracy deliberately carried out by Henry. Henry may have done this deliberately because he wanted to short LVMH's shares. But the question is, what good does it do for him? When the stock price is high, he can at least make money by selling it slowly. Could it be that after suffering so much, they still have illusions at this time and want to make arbitrage by borrowing shares and then buy back the shares at a low price?"

"I don't know." Frank Meyer shook his head. "If they are rational, they will know that when our shareholding has reached 40%, it is no longer realistic for them to compete for the company's equity. But the question is... is your opponent still rational now? Henry needs to be rational to publicly slander the reputation of LV? That is what he cherishes most."

Frank Mayer looked at the authority sitting behind the desk with a teasing look, "To be honest, the way you messed things up is really despicable even to me. You almost deceived everyone, and you took advantage of everyone's trust in you to get all this. And you are too ruthless. Once you get the equity, you will kick everyone out and completely deprive them of all power in the company. If I were them, I would be furious and even retaliate at all costs. So hatred may explain everything. Maybe they just want to see you suffer. After all, LVMH's stock price is now seriously out of touch with fundamentals. They have a greater chance of success by doing this. Although they can't save the situation, they can at least make you suffer a huge floating loss in stock value."

But when he heard what he said, Bernard Arnault smiled and said without any offense.

"Then they have chosen the wrong opponent. I never lose. I will have someone check it out right now. If it is really as you said, then I will swallow up their shares and push up the stock price. They are essentially giving me money."

You know, the first company that Bernard Arnault successfully usurped the throne was his family business, and the first chairman he fired was his father.

Even Dior clothing was obtained by him deceiving the French government by acquiring the Bossac Textile Group and then playing word games to break it up and sell it off.

So why would he care about this when he has done so many immoral things?
When others mention it, he will only be proud of his huge profits and the pain he brought to others.

However, there is still a very realistic problem. Purchasing shares still requires money. Where does the money come from?

"Old friend, how about you raise another $200 million for me? If, I mean if, they really do this, I will completely defeat them this time. By then, I will not allow them to even buy stocks that are closed at a low price." Bernard Arnault asked with a smile.

But Frank Meyer refused.

"I think we should just forget it. Can't we just watch them jump off the building and die quietly? Why do we have to intervene? Besides, I've already given you too much money. There are internal disciplines and external pressures. Lazard only has so much money in France, and most of it has been given to you. From the perspective of risk diversification, I can't give you any more money."

"Then I have to use the collateral, is that not allowed?" Bernard Arnault asked persistently.

"Collateral? No, no, you mean the shares of LVMH, right? Since you want to trade this stock, the volatility will increase. Of course, you can't use this stock as collateral."

"No, I'm talking about Dior clothing. The share price of LVMH has nothing to do with Dior clothing. The company's market value is now over one billion dollars. I mortgage my shares to you for 20%. Is that enough? And I can give you double the interest, and you can put half of it in your own pocket, you damn Jew!"

"Well, I think it's worth considering." Frank Meyer finally agreed.

Bernard Arnault was also happy now. "Okay, old friend. I won't let you help me for nothing. Our cooperation has always been seamless and successful. Isn't it?"

At this point, the two meticulous guys who were obsessed with money finally reached an agreement on business and countermeasures.

However, the next day, October 10, the last trading day of the week, something even more surprising happened to them, so that all their plans were no longer valid.

For no other reason than that they discovered that even Dior clothing was starting to be sold in large quantities, and the sales were even more aggressive than LVMH, with a turnover rate of up to 6%, causing the stock price to fall by 7% in one day.

At this moment, both of them felt something was very strange and were troubled. (End of this chapter)