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COMING UP:Share Opener Variant 3

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Transcript

00:00:00
>> LVMH is best known for this kind of thing, expensive Louis Vuitton handbags. Now, it wants to sell you a place to park your bag too. The luxury brand has struck a deal to buy high end hotel chain, Belmond. It's known for upscale hideaways like this, the Cipriani Hotel in Venice.
00:00:18
A favorite of the stars and site of George Clooney's wedding reception. The purchase has a $3.2 billion price tag. It marks a big expansion into hotels for LVMH. Reuters Breakingviews columnist, Lisa Jucca in Milan says the company wants to sell experiences as well as goods.>> So this purchase fits with that project, with that vision, and they are not complete novice to the hospitality business.
00:00:44
Because if you remember, in 2011, LVMH bought Bulgari, well known for its jewels, but also owner of its own hotel chains, the Bulgari hotels.>> The deal gives LVMH a portfolio of top properties. Among them, the only hotel within Machu Pichu in Peru. But it's paying a 40% premium to Belmond's closing share price from Thursday.
00:01:08
Some commentators say that looks a little expensive. LVMH will have to prove it knows how to sell expensive getaways, as well as Porsche bags.