LVMH Increases Hermès Stake—Again
Photo: Getty Images
Upping the ante: LVMH has increased its stake in Hermès.
Despite all the resistance from the family-owned Hermès, LVMH has increased its stake in the French luxury brand yet again.
Since LVMH started picking up stakes in Hermès back in October, the reaction from Hermès has been icy. Despite moving from a 17.1 percent ownership to a 20.2 percent ownership, Hermès has reiterated that it intends to retain control—with LVMH continually reassuring that it has no intention of a takeover.
However, a new development will surely get the execs buzzing again: LVMH has increased its stake again to 21.4 percent, according to Vogue UK.
"The family is determined to maintain control of the company," said Bertrand Puech, head of the partnership that controls Hermès, back in May.
Also in May, LVMH exec Pierre Gode said, "I formally deny that LVMH has sought to destabilize family shareholders, employees, or certain suppliers."
Whether or not the two companies can continue to play nice—and whether or not they intend more than they say—remains to be seen.
In related news, check out LVMH's recent initiative to get more women into the boardroom.
