SAINT EMILION, FRANCE - FEBRUARY 12:  Russian President Vladimir Putin (R) meets with Bernard Arnault (L), the CEO of Moet Hennessy Louis Vuitton (L.V.M.H.), in the Chateau Cheval Blanc February 12, 2003 in Saint Emilion, south western France. France, Russia and Germany continue to call for greater efforts to disarm Iraq through peaceful means.  (Photo by Gilles Bouquillon/Getty Images)
Bernard Arnault (L), the CEO of LVHM, meets Vladimir Putin (R). Possible world domination plan?

The fashion web is currently abuzz with speculations as to a possible Hermès takeover by the luxury giant LVMH. After all, they’ve done it to Louis Vuitton back in the 80’s and attempted to do the same to Gucci in the 90’s. Will the first decade of the millennium be branded as the decade LVMH took over Hermès?

Hermès, although publicly traded company, is a tightly controlled family business. About 20-30 family members control around 75% of all shares. So for LVMH to somehow manage put it’s hands on 14.2% of the other, “floating”, Hermès shares is a big deal!

For the time being, LVMH are sticking to the “we’re only a long-term shareholder” mantra, but given their history, analysts seem to beg to differ. WWD even suggests that had there not been a secret possibility for more shares purchasing from a family member, LVMH wouldn’t have gone through with the 14.2% “outsider” shares purchase.

Back in the 80’s LVMH managed to takeover Louis Vuitton by pitting family members against each other. Hopefully this time, Hermès family shareholders will be stronger and prevail!

[WWD]