True Luxury: LVMH Denies Intent To Purchase Hermes

Clients and admirers of true luxury can all breath a little easier. Rumors had been circulating since late last week according to which LVMH had been quietly buying up stock in Hermes for a possible takeover of the French luxury brand. Some of these rumors went so far as to suggest that LVMH head Bernard Arnault was currently in talks with representatives of the Dumas family. While a small proportion of Hermes' capital is publicly traded on Paris' CAC 40, control of Hermes is firmly within the grips of the Dumas family thanks to a complicated family trust structure that gives them control of a whopping 72% of the capital. The corporate structure also includes a number of "poison pills" that make it nearly impossible for an outside investor to gain a significant block of shares. Arnault denied the rumors during an annual LVMH shareholders' meeting. Hermes' president, Patrick Thomas, also reiterated that the Dumas family had no intention of selling. The rumors originated in Belgium and stemmed from the belief that Belgian financier and mentor of Bernard Arnault, Albert Frere, had bought a substantial block of shares in Hermes. The rumor caused a significant spike in the Hermes share price earlier this week. (Source)

Take-over rumors relating to Hermes tend to pop up now and then and never fail to strike fear in the hearts of the French luxury brand's legions of devoted clients and admirers. In this case, no one wants to see LVMH work its particular brand of bling-bling "magic" on one of the world's very last true luxury brands. An ad campaign featuring L'il Kim straddling an Hermes saddle? Ce serait tragique!

Sincerely,

The Luxe Chronicles

Photo courtesy of Vanity Fair.com.

Comments

[Helene]

The very thought of it sends shivers of 'degout' down my spine.

Helene

[Ms. P&C]

Tragique, indeed! If LVMH were to take over Hermes I'm not sure that I'd have a reason to go on living... I'm only saying that because I know first-hand what machinations Monsieur Arnault cooks up, and how his idea of "brand growth" is akin to brand destruction, in a way. (For further proof, "Deluxe" by Dana Thomas offers many examples, as you know...)

I am glad that the Dumas family has protected its company in such a way!