Today’s value in Europe Richemont under pressure from Third Point

(AOF) – Richemont jumped 3.8% to 124.85 Swiss francs, supported by speculation. American activist fund Third Point has acquired a significant stake in the capital of Cartier owner Richemont, reveals the luxury and fashion news blog Miss Tweed. Third Point and another hedge fund, which has a smaller stake, are urging the chairman of Swiss giant Johann Rupert to take action to improve its stock market performance, writes journalist Astrid Wendlandt.

According to Morningstar, Richemont trades on the basis of an enterprise value equal to 12 times its Ebitda, against 16 for LVMH and 31 for Hermès.

Miss Tweed reported last month that the Swiss group was exploring options to get rid of its loss-making Yoox-Net-A-Porter (YNAP) e-commerce business.

Richemont would have accepted the fact that YNAP has lost the technological race despite the considerable sums it has invested in it over the years. Richemont would like to back the platform of the luxury marketplace Farfetch, but Farfetch CEO José Neves is opposed to attempts by Johann Rupert, president of Richemont, to force his hand to invest in YNAP.

Third Point also attacked Royal Dutch Shell. He took a stake worth around $ 750 million in the oil group and called for it to be split into “several independent companies” that could meet the divergent interests of shareholders.

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