The name of French billionaire and vintnerBernard Magrez, who owns 35 estates globally, with Château Pape Clément in Graves as the flagship winery, has been linked as the likely suitor.
During a brief meeting with delWine at the 2007 En Primeur tastings at this Estate, Mr. Magrez had indicated that he was looking for expansion and would aim to buy some top quality wineries in Bordeaux.
Both the parties have not commented on the possible deal although the French investment bank Lizard has been commissioned to look for a buyer. The sale story was made public first by the Sunday Times of London on 28th December. It had quoted a potential price of €150m-200m. Most knowledgeable people in Bordeaux feel this price is too low and the Chateau would not fetch less than €600m.
Pinault has many businesses to which he added Latour by acquisition in 1993. Among his other business interests are the luxury goods group PPR, which includes brands like Gucci, Puma and Yves St. Lauren, the construction company Vinci and Christie's. The share prices of most of his publicly traded companies have seen a massive drop in the past year.
Magrez who has not denied the possible deal may look for funding from his friends, the actor Gérard Depardieu who is already a partner in some wineries and the former Bond girl Carole Bouquet.
One of the world's wealthiest business tycoons, Pinault may be in more of a financial squeeze than first believed. It is now being speculated that he might also plan to sell off Christie's, the auction house he bought in 1998 for around a billion euros ($1.3 billion)s. According to a report in the London Evening Standard, two private equity groups are interested in the company. |