Tuesday, September 4, 2012

Hermes files complaint against LVMH over share purchase

Hermes is famed for its scarves and bags

Hermes - known for its silk scarves and leather bags - said it had filed the complaint in a Paris court on 10 July.

"This complaint relates to the terms in which LVMH became a stakeholder in Hermes International," Hermes said.

LVMH, which currently owns 22.3% of Hermes, has been gradually increasing its holding.

In 2010 LVMH, which is controlled by billionaire businessman Bernard Arnault, revealed that it had built a surprise stake of 17% in its smaller rival.

As a result, Hermes family shareholders created a majority family holding controlling more than half of the company's shares.

The move ensures any takeover attempt would now require the approval of the Hermes family - the majority stakeholder.

France's AMF market watchdog is currently conducting a probe into the terms of LVMH's stakebuilding.



Source & Image : BBC

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