Douglas, LVMH not in talks

DUSSELDORF - German books to perfumes retailer Douglas has not been in contact with France's LVMH, the world's biggest luxury goods group, a financial source said, after a report that LVMH was eyeing a deal.

Photo: Douglas

News agency Bloomberg had reported, citing unidentified people with knowledge of the matter, that Douglas had made preliminary contact with LVMH Chief Executive Bernard Arnault as talks with financial investors had not yet yielded any results.

There has been no contact from either side, however, a person who is familiar with the situation told Reuters on Wednesday.

Shares in Douglas, which have gained almost 40 percent since CEO Henning Kreke said his family was interested in a buyout in January, were up 3.2 percent at 35.31 euros at 0749 GMT.

The Kreke family, one of the major shareholders in Douglas, is seeking to raise its stake and possibly take the group private with the help of financial investors.

Douglas and LVMH, which on Wednesday reported first-quarter sales up 25 percent, declined to comment.

Some analysts said LVMH, whose brands include Louis Vuitton and Moet Hennessey, could possibly be interested in the German group's chain of perfume and cosmetics stores to complement its Sephora chain.

Douglas has previously said it does not want to break up the company, which also includes clothing and jewellery retailers and the struggling Thalia bookstore chain.