Hermes Men’s Store on Madison Avenue
Hermès executives want to make one thing clear – LVMH is not welcomed at their shareholder meetings. In fact, they are not even welcome to own Hermès shares. The family-owned Hermès wants LVMH to leave it alone and considers the luxury giant’s actions hostile.
Bertrand Puech, founder Thierry Hermès’ fifth-generation descendant, told Le Figaro, “The family has clearly and unanimously said: If you want to be friendly, Mister Arnault, you need to withdraw.”
Puech also doesn’t think Hermès and LVMH are a good match in the first place, seeing how LVMH is a giant production machine and Hermès values craftmanship and tradition over quantity. He said, “This culture (of craftsmanship and strong traditions) is hardly compatible with one of a big group. It is not a financial battle, it’s a cultural battle.”
It’s not even clear if LVMH’s 17.1% shares maneuver was legal in the fist place. The French market regulator is still out on this one.
[Reuters]
