Shares in Moncler rose sharply on Friday after French rival LVMH invested in the Italian outerwear specialist, fuelling speculation about the long-term intentions of the owner of Louis Vuitton and Moet & Chandon champagne.

LVMH has a seat on the board of Moncler, an outdoor brand largely known for its ski jackets. The French fashion conglomerate acquired a 10% stake in the investment vehicle Double R, which is a partial owner of Moncler.

It seems LVMH is looking to increase their portfolio within the luxury apparel sector. The conglomerate has made an investment into Moncler.

LVMH and Ruffini Partecipazioni Holding have agreed not to increase their stake in Moncler to more than 20% in the next three years after the French luxury giant invested in the Italian outerwear company.

LVMH is investing in Moncler in a transaction that gives the luxury heavyweight a seat on the board of the Italian fashion company, best known for its pricey puffer jackets.

LVMH is investing in designer outerwear label Moncler SpA in a deal that will give the French luxury conglomerate a seat on the Italian company’s board.

That would give LVMH a see-through stake of up to 4 per cent. Moncler will continue to be controlled by Ruffini. It is not hard to see why Ruffini welcomed LVMH’s interest. His hold on Moncler had been weakened by an outflow of co-controlling partners,