The French stock market regulator, the AMF, has quashed any suggestions of a LVMH takeover of Hermes International.
At the request of the French fashion house, the AMF has ruled that LVMH cannot purchase any shares from small independent shareholders. This will ensure Hermes can group more than half of its capital into a holding company, thereby maintaining its control.
An investigation is ongoing into whether LVMH violated market rules by purchasing its current shares.
LVMH is putting on a brave face, insisting it was always happy to stand by as a “friendly” long-term shareholder. I’m not sure whether I believe the firm’s chairman Bernard Arnault, but it seems to be a moot point anyway.
Personally I’m thrilled that Hermes and the families that built the company from the ground up will be able to maintain control of it. It’s very impressive the way they’ve turned a humble family business into one of the most iconic fashion brands in the world, and they don’t deserve anyone snatching it away from them. Don’t you agree?
