Bluebell reportedly takes Kering stake in move to push for change

Bluebell Capital has taken a stake in French luxury group Kering and is pushing for change, including looking at a tie-up with Cartier-owner Richemont, two sources close to the matter told Reuters on Wednesday.

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Kering, whose fortunes are tied to its star label Gucci, which accounts for half of its sales and almost two-thirds of its operating profit, has come under pressure to diversify its revenue sources.

Kering shares traded up 7% on Wednesday after Bloomberg reported that Kering had met with executives from Bluebell and hired advisers to bulk up defences against the activist investor. Bluebell has a track record of lobbying for change at companies including Glencore, Bayer, Vivendi, Danone and Richemont.

Some change has already happened at Kering, said one of the sources, citing a reshuffle of the French luxury group's top management aimed at reviving sales at its star label Gucci, announced late on Tuesday.

Kering declined to comment.

A potential tie-up with Richemont -- the subject of speculation for years -- would have a better chance than a previous overture rejected by Richemont two years ago, one of the sources said, citing a weaker position for Kering, following a decline in market capitalisation compared with Richemont.

Richemont, which is controlled by chairman Johann Rupert, last September rejected proposals by Bluebell to name its candidate Francesco Trapani, a former executive of rival LVMH, to represent holders of publicly traded A shares on the Swiss-based company's board.

As for a potential tie-up with Kering, Rupert said in May that he said no to a merger two years ago.
Bluebell Capital Partners was launched in 2019 by Giuseppe Bivona and Marco Taricco, who saw an opportunity to bring shareholder activism – traditionally a predominantly North American phenomenon – to Europe.