I came across this bit of news a few days back and was quite intrigued by the goings on between these two luxury powerhouses. It seems the French stock market regulator, AMF is probing into the gigantic LVMH group to formally investigate a purchase recently made by the group in Hermes- and no, we're not talking Birkins. LVMH recently acquired 17.1 percent stock in the family-owned luxury goods company- a move that took Hermes by complete surprise. The company requires that anyone who buys over 15 percent of stock in their company make a statement of intent, and that is how they knew of the conglomerate's interest and purchases, made a few weeks back. While it looks like a hostile takeover is on the cards, LVMH responded that they had no intentions of taking control of the company or making an offer in Hermes in the next 6 months. I'm sure that helps the descendants of Thierry Hermes sleep well at night... NOT!!
It will be very interesting to see what happens next and exactly what LVMH's plans are in the long run. Watch this space.
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