The war between Hermes and LVMH enters a new phase
Hermes International confirmed in a statement on Tuesday the company had filed law suit against LVMHon the 10th July, condemning the terms of entry for LVMH in its capital structure in the fall of 2010. The complaint alleges insider trading and conspiracy, as well as price manipulation.
The prosecutor’s office said that following a July complaint by Hermes, it had requested the opinion of French stock market watchdog AMF before deciding whether there was a case to open a possible criminal investigation, a spokeswoman for the Paris prosecutor’s office said. Hermes said in a short statement it had filed its complaint on July 10 over LVMH’s accumulation of a stake of over 20 percent. A spokeswoman said this was the “logical consequence” of the stakebuilding, but had no further comment.
The group of billionaire Bernard Arnault, he was quick to react, announcing in a statement it would turn “complaint for blackmail, false accusations and unlawful competition.” “LVMH strongly reaffirms that the conditions of his entry into the capital of Hermes were perfectly legal,” said the world number one luxury, accusing Hermes of trying to bypass the bourse’s police without waiting for the AMF’s findings.