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e-Bay, Christie's and the LVMH group are currently engaged in a fierce underground battle to gain control of the two biggest auction groups in Paris, well-informed sources reported on February 11th 2000.

The main targets of the offensive now being carried out in Paris are the Tajan and PIASA GROUPS.

Meanwhile the LVMH group, headed by Bernard Arnault who acquired Phillips, the British auction house and bought the Aucland auction Website for $ 17,43 million is reportedly interested in the take-over of the Tajan group.

Phillips recently reopened an office in Paris but Bernard Arnault knows well that a long time will be needed before that group becomes active at high level there. A partnership with the Tajan group would therefore enable Phillips to be a major part of the French art market much sooner.

Whatever the outcome of secret negotiations now being held a swift revolution regarding the future of Parisian auctioneers is under way following moves taken by the French government to implement a reform of the profession.

It is a fact that most auctioneers are in a state of panic as not many groupings are in a position to defend themselves against Sotheby's or Christie's once these auction houses received the go-ahead to organise sales in Paris. There are 109 Parisian auctioneers belonging to 66 groups which realised a global turnover of $ 606 million in 1999 with sales of works of art and second-hand goods.

Many among these will give up their activities after the adoption of the impending reform and it has been estimated that less than 25 groups would then remain active. Some groups have already taken steps to preserve their position such as the Poulain-Le Fur association which moved recently to the Palais des Congrès building to organise sales of collectors' cars, their main speciality.

PIASA, now listed in second place after Tajan, might well accept to become a partner of Christie's, headed by François Pinault, Bernard Arnault's arch rival, according to well-informed sources. However PIASA agreed last year to enter into a partnership with Phillips, which has not become a reality yet.

So far Parisian auctioneers have enjoyed a secured position thanks to a 450 year
Monopoly. Many observers predicted that the implementation of the reform of their profession they would become like goats among wolves.

When Bernard Arnault acquired Phillips in November 1999 most of these observers thought that he only was envisaging to strengthen his Internet empire. In fact only a few knew that such acquisition was the first step of an offensive due to be staged on the French market.

Phillips, which has 17 salesrooms in Britain and two in the U.S, now seems set to launch a formidable attack on the Tajan group. Still negotiations are kept secret and no official from the parties involved would deny or confirm present rumours.

One thing is for sure, Bernard Arnault does not want to allow François Pinault to comfort a dominant position in Paris. Phillips, which recorded a $ 208 million turnover in 1999, well behind Drouot, Sotheby's (1,035 billion for the first half year of 1999) and Christie's ($ 1,013 billion for the first half year of 1999), already had an office in Paris in 1980 but had to close in the aftermath of the Gulf War which caused a major crisis on the art market after 1991.

Phillips reopened an office in Paris in 1997 after entering into partnership with PIASA though no commercial entity has so far been formed between them. This time Bernard Arnault seems determined to push ahead for an active partnership, either with Tajan or PIASA, and Marie-Laure de Cazotte, the new head of Phillips in Paris, is presently trying to find headquarters near those of Christie's and Sotheby's in Paris.