After having previously only owned less than five percent of Hermes shares, the threshold beyond which shareholders must declare themselves, LVHM now bought stakes to 17.1 percent at a total cost of 1.45 billion euros (R13.8 billion).
The conversational tone between both the conglomerate LVHM and the French Fashion House Hermes has been tightening, as Hermes’ speaks persons alleged “LVMH’s tactics in taking the stake were questionable and said they hoped the financial services watchdog would investigate”. Instead, the head of LVMH, Bernard Arnault, insists that he simply wanted to become a “friendly” long-term shareholder and that LVMH “has no intention of taking control of Hermes nor seeking Board representation”.
The future will now reveal if this new situation might affect Hermes’ or LVHM’s business policy or strategy on the long-term. For further information please visit: