LVMH has increased their stake in Hermès to 23.1 per cent even after previously being fined by the French stock market regulator for their actions
LVMH and Hermès have been going after each other since 2010, when Hermès alleged that LVMH came by their shares illegally, trying to take over the independent fashion house. LVMH was declared guilty and fined 8 million euros by the French stock market regulator for not disclosing the acquisition of the shares. At that time LVMH owned 22.6 per cent stake of Hermès but now it seems that they own 23.1 per cent, having increased their stock by 0.5 per cent.
Jean-Jacques Guiony, LVMH chief financial officer, was quoted defending this purchase but calling it merely an opportunistic move. “It doesn’t say anything about our attitude in the future, so you cannot extrapolate that for the rest of the year,” Guiony continues.
Will LVMH be held accountable for their latest action, or are their actions legal since they publicly announced this acquisition? Stay tuned for more updates on the fight between LVMH and Hermès.