Hermes Tells LVMH to Back Off!
5 November 2010

Hermes Tells LVMH to Back Off!

Hands Off!
LAUREN MILLIGAN 04 November 2010

Hermes reject takeover by LVMH

DESPITE assertions from LVMH chairman Bernard Arnault that the conglomerate is not planning a hostile takeover of Hermès, the French label’s senior figures seem unconvinced. The initial deal, a little over a week ago, saw Arnault acquire 14.2 per cent of Hermès, which he has now increased to 17 per cent – but he insists he is happy to be a “friendly” long-term shareholder.

“If you want to be friendly, Mr Arnault, you should withdraw,” Hermès executives Bertrand Puech and Patrick Thomas told Le Figaro yesterday. They further suggested that Arnault’s tactics in taking the stake were dubious and said they hoped the financial services watchdog would investigate.

Arnault has not yet reacted to Puech and Thomas’ statement but asserted at the time of the deal on October 22 that the acquisition was on good terms.

“LVMH fully supports the strategy implemented by the founding family and the management team, who have made the brand one of the jewels of the luxury industry,” a company statement read. “LVMH has no intention of launching a tender offer, taking control of Hermès or seeking board representation.”

All images and text via: British Vogue