Phillips sold to auction partners - Front Page - Phillips, de Pury and Luxembourg - Brief Article

Over the past three yaers, Bernard Arnault, chairman of the Paris-based luxury goods firm LVMH, has been preoccupied with making Phillips, de Pury & Luxembourg, the world's third largest auction house, a credible challenge to the dominance of Christie's and Sotheby's. In some ways he has succeeded. The company, for instance, came in second in the big semi-annual auction sweepstakes this past winter [see "Front Page," Jan. '02].

The endeavor, however, has cost many millions of dollars. In a recent belt-tightening effort at LVMH, Arnault decided to sell controlling shares of the auction business to Phillips's partners Simon de Pury and Daniella Luxembourg for an undisclosed sum. The team of Geneva-based dealers and auctioneers now owns 72.5 percent of Phillips, up from 25 percent, while LVMH retains a 27.5 percent stake. According to de Pury, the auction house will continue to function as it has done during Arnault's tenure. But some experts believe that without Arnault's deep pockets, Phillips may revert to its underdog status.

COPYRIGHT 2002 Brant Publications, Inc.
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