Reuters
Nov 17, 2013
Belgian court investigating LVMH chief Arnault-owned firm
Reuters
Nov 17, 2013
BRUSSELS, Belgium - Brussels prosecutors have opened an investigation into a 2.9 billion euro capital increase in a Belgian company owned by French billionaire and chief executive of LVMH Bernard Arnault, Belgian daily De Tijd said on Saturday.
An LVMH spokesman confirmed the investigation in a statement emailed to Reuters and said it was the normal consequence of a procedure started a year ago.
"We are investigating a 2.9 billion euro capital increase at his Belgian company Pilinvest," court spokeswoman Jennifer Vanderputten was quoted as saying by De Tijd.
The paper said Pilinvest was holding shares of a family-owned company that indirectly owns shares in French luxury group LVMH.
A Brussels court spokesman was not available for comment.
LVMH said Pilinvest was created in Belgium 14 years ago and had operated as a holding company since then.
"(Pilinvest) has always respected current legislation and has a tax agreement with Belgian authorities," it added.
Arnaud, France's richest man, last year caused controversy by requesting Belgian nationality as France prepared to introduce a 75 percent supertax.
He later withdrew the request and said his frustrated efforts to acquire Belgian nationality were motivated not by tax concerns but a desire to tie up legal ownership issues so that his children would not fight over the riches he would one day leave to them.
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