Global luxury conglomerate LVMH SA has increased its stake in the quintessentially French maison, Hermes, to over 17 per cent. Until this recent acquisition of 14.2 per cent, it was not public knowledge that LVMH owned shares at all. In France, owners holding under 5 per cent can remain anonymous.We wonder if this will turn out to be another classic ‘ghost muncher’ situation that will see LVMH incrementally increase their shares to ownership. Stranger things have happened, and we are sure Hermes is a name worth acquiring. Nonetheless, ‘not so’ says LVMH right now. ‘The objective of LVMH is to be a long-term shareholder of Hermes’ said an unidentified spokesperson. Apparently they like what Hermes is doing, and are simply interested in investing in this company because of what they do and how they do it. Hermes is certainly an industry leader, commanding a level of respect not afforded to many. Added bonus, when Hermes shares are doing so well.
Call us cynical, but when the likes of LVMH bid a fine bonjour and pay for it, you can be sure that there is a future strategy in place. We won’t be surprised if they raise the holding soon enough. Time, of course, will tell. Follow this link for more info.
Image credit: limitedhype.com
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