De Sole gave proof of his determination in February 1999, after Arnault demanded the right to appoint a director to Gucci’s board. De Sole riposted by announcing that the company had issued 20 million shares—equivalent to LVMH’s stake—to a newly created employee stock ownership plan. LVMH sued to block the move, which would have reduced its holding in Gucci to 25.6%. But LVMH was caught off-guard one month later, when De Sole dealt Arnault’s ambitions a fatal blow. On
March 19, Gucci announced that it had found a white knight in François Pinault, the chairman of Pinault-Printemps-Redoute (PPR), the largest non-food retail group in Europe. PPR bought 40% of Gucci for $2.9 billion, diluting LVMH’s holding to 19.6%. At the same time, Pinault announced that his holding company, Artemis, was paying close to $1 billion for the beauty business of French pharmaceuticals firm Sanofi, which owned Yves Saint Laurent and licenses for several other brands