Handbags fighting

20 May 2013 By Pierre Briançon

The French market regulator says the drinks-and-luxury group stealthily tried to take control of the exclusive leather goods maker in 2010. LVMH seems to have mostly used regulatory loopholes. But if these exist, it is hard to blame the company for exploiting them.

This content is for Subscribers only

Context News

LVMH said it would fight the findings of a regulatory probe into the way it amassed a stake in rival luxury group Hermes.
The French stock market authority found LVMH secretly bought shares in rival Hermes and this was not purely a financial investment as the luxury group has claimed, Le Monde reported on May 18.
LVMH is to appear before the watchdog’s sanctions committee on May 31.
Le Monde said that the investigation found that LVMH had in 2001-2002 acquired an initial stake of 4.9 percent through subsidiaries based in tax havens and which was not declared in its accounts.
LVMH, which owns 22.6 percent of Hermes, surprised the market in October 2010 when it announced it had a 14 percent stake, gained partly via derivatives that allowed it to not declare its holding.

Context News

Email a friend

Please complete the form below.

Required fields *