L'Oreal says Bettencourt board move shows stability

PARIS - L'Oreal Chief Executive Jean-Paul Agon said on Tuesday that the replacement of Liliane Bettencourt by her grandson on the board of directors signalled the family's continuing commitment to the cosmetics group.

Jean-Paul Agon. Photo : AFP

Agon also said Bettencourt's replacement would have no effect on a shareholder agreement between the family and Swiss food group Nestle, which owns 31 percent of L'Oreal, over the company's future.

He told a news conference that the three family representatives on the board would continue to vote in a block.

"This transition is, I think, a transition which is absolutely ideal because it changes nothing regarding the balance of L'Oreal's shareholding structure or the functioning of the board of directors," Agon said. "It's very reassuring for the stability of the company."

Bettencourt, 89, who has a 30 percent stake in L'Oreal, lost control of her own business affairs last October after a medical examination concluded she was suffering from a form of dementia.

The world's largest cosmetics company had announced on Monday that 25-year-old grandson Jean-Victor Meyers would take her place on the board.

Meyers was designated to look after Bettencourt's health and physical well-being by the same judge who in October awarded her daughter control over her wealth and income.

With a fortune estimated at 17 billion euros, Bettencourt is France's wealthiest woman.

L'Oreal shares were up 3.1 percent after the cosmetics group forecast growing revenue and profits as it speeds up expansion in emerging markets. (Reporting By James Regan; Editing by Christian Plumb and Will Waterman)