Skip to content, or skip to search.

Hermès Asks to Be Exempted From Trade Regulations

As previously reported, Hermès announced over the weekend that they're grouping over 50 percent of the family's shares into an unnamed holding company to prevent LVMH, which seems to be poised for a hostile takeover, from acquiring them. There's one hole in this plan, though: French market regulator AMF has a rule that when companies pool together over one third of their shares, they are obligated to launch a public offering. This would obviously defeat the purpose of Hermès's whole endeavor, which is designed to make their shares less accessible to the public (and LVMH), not more so. But Hermès has a plan for getting around this roadblock: They should just be exempted, of course! AMF members are expected to reach a decision within a few weeks; meanwhile, it's safe to assume that their wives will all be getting Birkin bags for Christmas.

Hermes Family: New Holding To Be Created If AMF Grants Exemption [WSJ]
Earlier: Hermès Makes Good on Its Plan to Protect Itself From LVMH

Photo: Julien Hekimian/Getty Images

Copyright © 2013, New York Media LLC. All Rights Reserved. The Cut® are registered trademarks of New York Media LLC.

Copyright © 2013, New York Media LLC.
All Rights Reserved.

Copyright © 2013, New York Media LLC. All Rights Reserved.

Connections

Critics’ Pick
Show More
Label
Season
Model:
% Agree

Sponsored Message

More Celebrity Lookbooks

Close

    Sponsored Message Continue