Hermes family forms holding company




Descendants of the founder of Hermès International will create a separate holding company to counter a potential takeover by Bernard Arnault, head of LVMH Moët Hennessy Louis Vuitton,

the

New York Times

reported.

In October, Arnault announced that LVMH had acquired a 17.1% stake in Hermès.

The Puech, Guerrand and Dumas families, which together own about 73 percent of the company, said … that they would create a separate holding company combining shares representing more than 50 percent of Hermès’s capital…. The creation of the structure would mean that family members wanting to sell shares would be able to trade between themselves without giving Mr. Arnault a chance to increase his stake.

France’s market regulator must approve the new structure before it can be enacted, the

Times

article said. (Source:

New York Times,

Dec. 6, 2010.)

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