LVMH woos Les Echos journalists with independence guarantees

24 July 2007

Luxury goods maker LVMH Moet Hennessy-Louis Vuitton (LVMH) run by Bernard Arnault, has offered guarantees to journalists "to protect quality, independence and jobs", in its bid to acquire Les Echos from the UK''s Pearson Group.

Pearson Plc, has been in talks to sell its French business newspaper Les Echos to luxury group LVMH.

The journalists had gone on strike twice last month in protest against the proposed sale saying they fear a conflict of interest if the paper were to pass in to the hands of one of France''s best-known businessmen who also happens to own Les Echos'' rival business daily, La Tribune, whose staff have, incidentally, now demanded the same safeguards offered to Les Echos.

The two companies have come to an understanding that no job cuts would be made for at least three years and all staff agreements currently in force would be maintained for at least five years.

They have also agreed to formation of an 11-member supervisory board the editor and three independent members, chosen jointly by LVMH and journalists'' representatives. The removal of the editor would require the approval of at least two independent members of this supervisory board.

An editorial independence committee will be established with its charter being drawn jointly between LVMH, Pearson and the Society of Journalists.