Offer is subject to financing which means that this is not an offer....yet....Quite an interesting one... Cautious in regards to approval.... And timing....My reading would be that given LVMH is paying with RMS shares, "the satisfactory financing conditions" have to be somewhat related to that portion of the financing not the debt....We have stressed in previous transactions the need for an offer in France to be irrevocable.... Hence financing has to be in place, I doubt LVMH is quoting satisfactory financing conditions in regards to the debt financing rather, they are looking at a favourable tax opinion regarding the divestiture of the RMS stake. Please note that the RMS shares will be offered ex dividend....TIMING:Antitrust traditional has never been an issue in the sector, but given the foothold in Chinese market with are venturing in unknown territories....The main driver of the timing will be filing of the offer doc and getting an opinion from " commissaire aux apports", which is the independent expert giving its opinion the value of a merger.... 6months top of my head....Basically this is to the best of my knowledge the first Reverse Morris Trust transaction in France... We will get legal opinion before making any further comments as to the tax treatment for Arnault, and what the french regulator will say about itResearch Disclaimer
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