Hermès family shareholders planned to meet Dec. 3 to discuss how they might counter LVMH’s increased stake in the 173-year-old company,
the
Financial Times
reported.
Bernard Arnault, the head of LVMH, now owns 17.1% of Hermès International.
The family “is meeting to discuss whether it can prevent Mr. Arnault from increasing his stake, while retaining the family’s ability to sell shares,” the
FT
article said.
One of the proposals being discussed in creating a non-listed family holding company to maintain 51% of the shares owned by the founder’s descendants, according to the report.
The Hermès family has for many years discussed the creation of a family holding company and some members are annoyed that this was not put in place earlier. However, these structures would oblige the family to make an offer for the whole company unless given an exemption from the AMF, the French stock market regulator.
(Source:
Financial Times,
Dec. 3, 2010.)
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