Hermès International SCA’s family shareholders would be launching a formal holding company that would consist of more than 50% of the company’s shares. It would not involve the formal takeover offer for the rest of the group but then it would consolidate the family’s position in the luxury company. The block would mean that all attempts to usurp the company’s shares through unfriendly means would be thwarted. LVMH has been desperately trying to buy off the company and Hermes has been doing just the opposite. It has been trying to save itself from a hostile takeover from the guys at LVMH.
The French appeals court ruled that Hermes can create a holding company in order to save more than 50% of the company’s shares. Hermes is one of the leading fashion houses that are still not bought by LVMH. Meanwhile, LVMH is one of the most successful luxury brand s in the world and its success has astounded most people in the fashion circuits.
I would say, Hermes has a lot to lose if it did not stand ground and fought the case. The LVMH usurpation though would not harm the products and services as we have seen that LVMH usually nurtures the companies that it busy off. I would say, Hermes has a better future with LVMH than being with a draconian family that tries all attempts to modernize the company. You could also take a look at what we wrote about Hermes sometime back, and what we wrote about LVMH sometime back.
Via:Â wsj
