According to Bloomberg, Moet Hennessy Louis Vuitton has purchased 14.2 percent of Hermes and doesn’t plan on taking control of its rival.
LVMH, which declined to say if it held Hermes shares before today, said the total cost of the purchase would be 1.45 billion euros ($2 billion). An external spokesman for Paris-based LVMH, who asked not to be identified, declined to give further details. Investors in France must disclose shareholdings of five percent and more.
“LVMH has no intention of launching a tender offer, taking control of Hermes nor seeking board representation,” LVMH said today in a statement. “The objective of LVMH is to be a long- term shareholder of Hermes. LVMH fully supports the strategy implemented by the founding family and the management team.” Calls to Hermes were not immediately returned.
Hermes shares have climbed 77 percent in Paris since the May 1 death of former Chief Executive Officer Jean-Louis Dumas on speculation the company’s founding family may be more willing to sell. His death caused no change in the Hermes family’s attachment to the maker of Birkin bags and silk scarves, the company said at the time. Most of Hermes stock is privately held.
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