Scent of a Bargain for European Tycoons

With few luxury options left to snap up, homegrown moguls are increasingly looking downmarket for the Continent's undervalued companies

What does luxury king Bernard Arnault see in discount stores? Arnault, the boss of LVMH Moët Hennessy Louis Vuitton, disclosed on Mar. 7 that he had teamed up with U.S. investment group Colony Capital to buy nearly 10% of Paris-based Carrefour, the global No. 2 discount retailer after Wal-Mart (WMT). News of the $4.5 billion purchase broke on the same day Carrefour Chairman Luc Vandevelde was ousted in a dispute with France's Halley family, Carrefour's biggest shareholder (with a 20% voting stake).

To continue reading this article you must be a Bloomberg Professional Service Subscriber.