Hermès-LVMH Stalemate Continues


Hermès store Paris

Photo: AFP/Getty Images

Who's got the golden ticket? The future of Hermès is still not set in stone.

Hermès’s family-owned world was rocked this winter when luxury mega-conglomerate LVMH purchased stakes in the company amounting to 20.2 percent.

Though LVMH has continued to deny that it has plans to acquire Hermès, the iconic French house has been on the defensive ever since, waging a war of words against the Bernard Arnault–helmed corporation.

At a recent shareholder meeting, Hermès reiterated its intent to keep LVMH from taking over.

"The family is determined to maintain control of the company," said Bertrand Puech, the head of Émile Hermès SARL, the family-run partnership that controls Hermès, according to the Wall Street Journal.

Puech reportedly called for LVMH to sell half of its stake in the company, but LVMH has yet to budge—although it does claim its intentions with Hermès are peaceful.

"I formally deny that LVMH has sought to destabilize family shareholders, employees, or certain suppliers," LVMH exec Pierre Gode said at a recent shareholder meeting, according to the Wall Street Journal.

Peaceful or no, this is one pairing that’s far from settled. Watch this space!

In related news, check out another recent luxury LVMH investment.

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