Louis Vuitton Wins Over Hermes?

Rumors that were flying around a long time suddenly became a reality. On October 23, the world’s largest luxury goods group LVMH, LVMH.PA announced it had acquired Hermes (HRMS.PA) 14.2% of the shares, plus convertible on hand derivatives, the total holdings amounted to 17.1 %.

Almost all people shocked by the news – although LVMH Chairman Bernard Arnault (Bernard Arnault) almost on the coveted Hermes is obvious, he hinted several times in the past two years, interested in buying horses Shi, but this has been 170 years of history with the family business position several times, to maintain the independence of the family business. Moreover, even in the economic crisis, Hermes is also a minority maintained a strong growth performance of the luxury brands, people do not see any reason for resale or sale of shares.

The Select statement issued on Saturday also feel unprepared to Hermes. Hermes, Executive Vice President Patrick Albaladejo world, said the company until the acquisition of LVMH statement issued an hour before the news that, “We are very surprised.”

And the price is more alarming. According to LVMH figures disclosed that 17.1% of the shares of about 1802 million shares at a cost of about 14.5 billion euros, or about 80.5 euros per share price. And this year, the Hermes of the average share price is about 100 euros, the day before the acquisition news was leaked, it is the Paris stock market closing price of 176 euros. This means that LVMH’s purchase price is almost half the current market price. No one knows where comes such a big change.

via dixonlei.blog.com