Hermes yesterday rejected “an attack” on its capital by luxury goods giant LVMH, sounding the start of what could become a bitter battle for control of one of France’s most iconic brands.
The head of LVMH, Bernard Arnault announced he had bought 17 per cent of his rival Hermes, insisting that this does not herald a hostile takeover but that he simply wanted to become a “friendly” long-term shareholder.
“If you want to be friendly, Mr Arnault, you should withdraw,” retorted Hermes executives Bertrand Puech and Patrick Thomas, in an interview with yesterday’s edition of French daily Le Figaro.
The pair alleged Arnault’s tactics in taking the stake were questionable and said they hoped the financial services watchdog would investigate.
“This entry has nothing friendly about it. It was neither wanted nor asked for,” said Mr Thomas, as Mr Puech complained that he had had barely one hours notice from Arnault before LVMH released a statement confirming its purchase.
“When you look at the structures that allowed this attack to take place, we see that they are LVMH subsidiaries based in Luxembourg, the United States and Panama, which is not the most transparent country,” Mr Thomas said.
Both executives said that Arnault’s move would do nothing to change the culture at Hermes, and noted that he had not asked for a seat on the board.
“We’re artisans, our goal is to make the best products in the world. We’re not in luxury, we’re in quality,” Mr Puech told Le Figaro.
Mr Puech is a fifth-generation heir of Hermes’ founder Emile Hermes, while Mr Thomas is the family owned firm’s manager. Family members still control the 73 per cent of the firm not in LVMH chief executive and chairman Arnault’s hands.
LVMH, or Louis-Vuitton Moet Hennessy, is a French holding company and the world’s largest luxury goods group, specialising in wines and spirits, fashion and leather goods, perfumes, watches and jewellery.
It owns more than 50 global brands, including marques such as Christian Dior perfumes, Glenmorangie whisky, Givenchy fashion and TAG Hauer watches.