Of all the battles and confrontations that have been in fashion in recent months against the Hermès LVMH is my favorite. It has everything: fashion, money, family tradition, actions, demands, judgments, accusations ... Come on, there's a very serious business saga back here. In a phrase: LVMH takes time to love each other Hermès tea but these more resistant than the small village of Asterix gala to Julius Caesar, a metaphor but easy to bring home and painted with the power of LVMH .
Hi, I'm LVMH and I have 17% of your company
The story is not easy to summarize. The powerful group headed by Bernard Arnault takes time behind one of the best luxury brands in fashion in the world in terms of image and prestige. Hermès was founded in 1837 and today is still owned by the family of founder Thierry Hermès, a rarity in the business. LVMH wants to expand its list of big brands that is Lous Vuitton, Celine and Fendi, among many others (you can see the entire list on Wikipedia ), with which he is resisting more.
In October 2010 LVMH announced by surprise that already owned 17% of the capital of Hermès. Movement that generated all kinds of rumors of a possible OPA that took place at the end to the hostility of the brand Hermès defended creating the H51 Holding in December 2011 in which achieved further strengthened controlling 50.2% stake. Last May LVMH announced that it had a 22.28% stake, no amount had increased from the month in which Hermès created its holding.
The Holding H51 as an entry barrier and begin allegations
After that starts the fight in the mud transparent millionaires great costumes and lawyers. In April 2012 a new tab Hermès moved: at their annual meeting with the partners proposed a statute requiring all shareholders with more than 0.5% registered in your name so that the family could easily control who owned what. This is due to that in France, reports Cinco Dias , "after a certain legal threshold before crossing the next, a company has no obligation to declare any purchases you make to the Authority for the Financial Markets ( AMF ), Supervisor of the Paris Stock Exchange. "
Hermès is a tantalizing sign that generates a good profit and reputation provides a value which can not be calculated. In the last distribution of dividends LVMH 164 million received by Hermès with its 22.28%. The benefit in 2011 was 885.2 million euros , 33% more than in 2010. For Hermès family, with 62.8% as of March 2012 were 464.6 million in dividends. On September 4, the Hermès family controls 72% of the capital of the Holding Company by H51. Protection against large foreign investors prioritatio comes with a right of acquisition over 12.3% supplementary capital.
Go back to July 10 of that particular month. Hermès filed a complaint against LVMH by "modalities" used to enter its capital, as reported EFE . It is meant to challenge the mode of entry into the capital by Hermès LVMH . By WWD Hermès accused LVMH to manipulate the stock price and make use of inside information.
LVMH respond quickly to many accusations and investment policy purchase. But it has done in the courts. Yesterday, September 4, 2012, LVMH laid a complaint against Hermès by "blackmail, false accusation and unfair competition," according EFE . In own words to the news agency by the spokesman for the group:
We just learned that Hermès has sued against LVMH and we denounce Hermès.
The story has just begun and promises to be long. We will monitor their development.