FRANCE: Regulator takes steps to protect Hermes stake
Founding family members of luxury goods maker Hermes International SCA have been given permission to group more than 50% of their shares in the firm into a separate holding company, in a move intended to protect the firm from a hostile takeover from rival luxury goods group LVMH.
The decision by French stock market watchdog Autorite des Marches Financiers (AMF) exempts them from having to launch a bid for the entire company, which is usually the case when shareholders have a stake of more than 33%.
The new holding company will now have first right of refusal on the remaining shares held directly by the family.
Members of the Hermès family said the decision reflects "the family's unanimous desire to protect the Hermès culture."
The action comes after LVMH, which owns Louis Vuitton, Céline, Fendi, Donna Karan and Marc Jacobs, acquired a 20.2% stake in Hermes at the end of last year. However, it denies seeking a board seat or control.
The company used derivatives called equity swaps so that it wouldn't have to make a declaration when it crossed certain thresholds. But the AMF is still examining whether LVMH violated market rules by buying the shares this way.
Help test our new apparel sourcing tool.
The European Commission has cleared the way for French luxury group LVMH to buy its Italian rival Bulgari after deciding the deal would not have a negative impact on the market....
Luxury fashion retailer The Donna Karan Co is implementing two software solutions packages from Maple Lake....
Taking a look at the week ahead for the footwear and apparel industry, here is a snapshot of just-style's latest news and insights agenda. ...
Luxury goods group LVMH Moët Hennessy Louis Vuitton has posted a 17% rise in first quarter sales thanks to double-digit growth across its business....
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- Industry groups reaffirm commitment to Bangladesh
- Using worker surveys to drive supply chain change
- Where does VF supply chain sit in growth strategy?
- Nike filed patent for "reinforced denim"
- Gap unveils five-year sustainable fibres pledge
- US textile industry applauds Trump executive order
- Pentland Brands reveals Berghaus factory list
- Adidas and Reebok top transparency index
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Myanmar - ISA Country Report