A Dutch court cleared an alliance between Gucci and French retail group Pinault-Printemps-Redoute (PPR) yesterday and Gucci immediately signalled it would challenge its rival, Moet Hennessy Louis Vuitton (LVMH), on world markets. PPR said that the alliance would provide Gucci with a war chest of $E billion (€2.85 billion). LVMH responded to the court ruling by saying it would bring another action in a different Dutch court to block the Gucci-PPR alliance.

Gucci, which specialises in leather goods, welcomed the court decision and its president, Mr Domenico De Sole, signalled that he intended to challenge LVMH, his courtroom opponent, on its luxury markets around the world.