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LVMH Takes Minority Stake in Hermès...   >>>

LVMH Takes Minority Stake in Hermès

October 25, 2010, 2:38 am



LVMH Moët Hennessy Louis Vuitton, the French luxury goods giant, says it has bought a minority stake in the family-controlled handbag maker Hermès but would not seek to take over the company or influence its strategy, Reuters reports.



LVMH, the world’s biggest luxury goods company, said it had bought 15,016,000 shares of Hermès, or a 14.2 percent stake. It said it planned to convert derivative instruments in Hermès shares that would give it a total of 18,017,246 shares, or a 17.1 percent stake.



LVMH said the total cost of the stake would be €1.45 billion ($2.02 billion).



“The objective of LVMH is to be a long-term shareholder of Hermès and to contribute to the preservation of the family and French attributes, which are at the heart of the global success of this iconic brand,” LVMH said in a statement on Saturday.