L’Oreal shares have bounced by nearly 2% on the news that Liliane and Frances Bettencourt have reached an agreement on dispersal of the family assets.
The 63-year-old society photographer and artist Francois-Marie Banier was accused of preying upon the 88-year-old billionaire, when he was written into two life insurance policies and received gifts in excess of €300 million. He will now keep the gifts but be written out of the insurance policies.
Under the terms of the agreement, Frances’ husband Jean-Pierre Meyers and their two children Nicolas and Jean-Victor will have a greater role in Tethys, which owns 31% of L’Oreal worth around €14.5 billion. L’Oreal shares were up on the news, which represents greater stability for the management of the family firm. Nestle SA also owns 30% of L’Oreal and will be watching for the effect on their share price.