HERMES yesterday launched a fresh round of legal proceedings against arch-rival LVMH to obtain the cancellation of equity swaps LVMH used to stealthily amass its stake in the French luxury goods maker.
The new move in the Paris commercial court comes on top of a similar complaint Hermes lodged against LVMH in criminal courts in July 2012. Hermes argues that LVMH had the intention of building up a stake in Hermes when it bought equity swaps in 2008 and should have informed the market of its intention.
Hermes owners have been at odds with LVMH, the luxury group founded by billionaire Bernard Arnault, since it revealed in 2010 that it had secretly built up a 14 per cent stake in Hermes. This was later increased to 22.6 percent.
LVMH, which denies any wrongdoing, declined to comment.
City A.M. Reporter