Monday, 25 October 2010

LVMH Increases Its Undercover Stake In Hermes 25/10/10

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:

Follow MO Luxury's Facebook page for more luxury news...

No comments:

Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,