LVMH defend the state against Hermes alleged involvement of AMF

  LVMH Moet Hennessy Louis Vuitton SA (MC), the allegations of the regulatory authorities in the French market is now it violated disclosure requirements in building a stake in Hermes International SCA rivals react. (RMS)

LVMH will tell you, an audience in Paris Sanctions Committee of the Financial Markets Authority that he has done nothing wrong after the purchase of equity derivatives of Hermes shares in 2008, according to a representative of the company, who asked not to be named.

The AMF investigation for more than two years as LVMH acquired a stake in Hermes cash-settled equity swaps. The market authority informed LVMH in October that its Board that a fine company recommends on this topic. LVMH will not be forced to renounce his participation.

Announced the largest manufacturer of luxury goods in the world in October 2010 that it held 17.1 percent of Hermes, after the conversion of derivatives have three banks in 2008 in shares. LVMH, which does not try to control Hermes says, since his participation was added and now owns 22.6 percent.

CEO Bernard Arnault said last month that the company made no intention of a shareholder Hermes, after the purchase of the products, originally as an investment. LVMH planned all along to build a stake in Hermes with swaps, Le Monde reported last week, citing an AMF document.

LVMH has decided to swap shares convert Hermes, because he feared that the cash compensation would mean millions of Hermes shares would be placed on the market, lowering the price of shares in the Kelly bag manufacturers and provides another way competitors in the capital , LVMH said.

Holding company

Founded the owner of the Hermes family holding company in 2011, to protect themselves against a takeover by LVMH. H51 covers 50.2 percent of Hermes shares held by family members and a right of first refusal on an additional 12.3 percent. A total of 52 members of the family over three quarters of Hermes directly.

Investors should usually open to investments whenever they. Above the threshold of 5 percent increments While equity swaps were exempted from these rules, that does not mean investors can not ignore the general principles of transparency and integrity in its financial communication, then-President Jean-Pierre Jouyet said the AMF, the Journal du Dimanche in November 2010.

The Disciplinary Committee, while part of the AMF, is independent of the decision, whether the matter further pursue.