Bergé withdrew his offer – reportedly worth nearly £30m – on February 5, five days after his original deadline of January 31, simultaneously announcing his intention to create his own auction house with a handful of Paris auction firms. His offer was trumped by an offer from investment fund Barclays Private Equity (BPE) on January 17, thought to be worth nearly £45m.
Bergé told French daily Le Figaro on February 6 that he “refused to get drawn into an ‘open bid’ process” with rivals “attracted by a capitalist operation”. The Barclays’ offer would “result in the break-up of Drouot”, he added – an allusion to the draw of Drouot’s prime asset, the Gazette de l’Hôtel Drouot (said to post £2m profits yearly).
Bergé acknowledged that he had failed to “break down almost archaic resistance” and called the commissaires-priseurs’ attitude “suicidal”, explaining: “They believe they can continue as before… without having to submit their egos to a new structure that would have placed the leadership of Drouot in the most capable hands.” Drouot promptly issued a press statement accusing Bergé of “attempting to impose his project by an ultimatum rather than defend it against rival projects” and insisting that the Paris commissaires-priseurs would “evaluate offers calmly and methodically” before making a “transparent” choice.
Drouot has commissioned the Lazard bank to carry out an audit of its assets, and hired lawyers Prat & Bredin to draw up a calendar for negotiations and evaluate rival bids for control of Drouot.
BPE chairman Gonzague de Blignières says that Barclays will “firm up our offer, with backing from London” once the audit is completed (expected to be by the the start of March), with a view to “optimising the management of Drouot’s assets and helping a profession that lacks oxygen”.
Investment bankers Rothschild & Cie are also believed to be tabling a takeover bid and there are rumours of a further offer from an as yet unidentified investment fund.
Meanwhile Artprice.com, the operator of online art-market databases in which luxury magnate Bernard Arnault has a minority stake, have confirmed their interest in acquiring the Gazette de l’Hôtel Drouot and its Website. Artprice boss Thierry Ehrmann declared on February 6 that Bergé’s withdrawal “testified
to Drouot’s longstanding malfunctioning” and called on commissaires-priseurs to “undergo an unparalleled transformation” to enable France “to regain its role as global leader” of the auction scene.
Rivals jockey for position as Bergé withdraws Drouot offer
Pierre Bergé, president of Yves St-Laurent Haute Couture, has withdrawn from the race to acquire control of Drouot Holding SA. The company, which is owned by Paris’s 110 commissaires-priseurs, controls the Hôtel Drouot and the lucrative auction weekly, the Gazette de l’Hôtel Drouot.
