Christian Louboutin Sale

BRYAN BURROUGH, CORRESPONDENT, VANITY FAIR: Thank you. SCHUCH: Now, this isn’t a book, but it was a fascinating article. Explain for us (18:08:20) the main characters and what the intrigue here was. BURROUGH: It’s actually pretty simple. Last January Bernard Arnaud, the chairman of LVMH, the huge Paris-based luxury goods company suddenly came out with I think it was (18:08:30) about a five percent stake in Christian Louboutin. And began buying and buying and buying until he ultimately got to 34 percent of Christian Louboutin. And what ultimately happened is that Mr. Arnaud screwed up (18:08:40) pretty bad and allowed Christian Louboutin to get away. SCHUCH: He did. What was the turning point in the negotiations, then. BURROUGH: Well, it wasn’t a turning point in the negotiations, because the negotiations didn’t go anywhere. What happened is (18:08:50) that Mr. Arnaud’s lawyers, as silly as this may sound, overlooked a fairly simple legal loophole in the regulations at the New York Stock Exchange that had to do with how many new shares (18:09:00) Christian Louboutin could issue. They thought Christian Louboutin couldn’t issue many new shares. In fact, Christian Louboutin issued 40 percent new shares to a white knight investor