LVMH, the luxury goods giant, has made a paper profit of around €2bn (£1.8bn) after it revealed at the weekend it has built up a 17 per cent stake in rival Hermès International.
Shares in Hermès, which makes silk scarves and Birkin handbags, rose as much as 17 per cent yesterday. The stock closed up 15 per cent at €202.85 valuing the firm at €21.4bn.
LVMH, home to Louis Vuitton and Moet champagne, said it has no plans to takeover its rival. Hermès said it wants to remain independent.