Hermes: LVMH Brings an End to AMF Proceedings
PARIS -- September 3, 2013
LVMH has decided to terminate the AMF proceedings in relation to its
acquisition of approximately 10% of Hermès’ share capital in October 2010.
This decision reflects LVMH’s commitment to ensuring the soundest possible
management of its investment in Hermès. To this end, LVMH will not appeal the
25 June 2013 decision of the AMF’s disciplinary commission.
Throughout its proceedings, the AMF expressly confirmed that in acquiring its
equity stake in Hermès, LVMH never breached regulations regarding ownership
thresholds or engaged in insider trading or market manipulation.
The AMF’s only criticism, (other than in relation to certain accounting
records which the AMF confirmed had no impact on LVMH’s annual accounts),
concerned the timing of LVMH’s disclosure of the Hermès equity swaps, which
the AMF considered should have been made in June, rather than October, 2010.
The AMF argued that LVMH reached an agreement with two of the three banks
involved in June 2010, when in fact the agreement was not achieved until
October. As promptly remarked by eminent observers, the AMF disciplinary
commission’s position is therefore highly questionable, both in law and in
As a result, LVMH would be entirely justified in appealing the disciplinary
commission’s administrative decision, as envisaged at the time it was
announced. However, the interests of LVMH’s shareholders go beyond the defence
of these legal principles. Instead, LVMH must also consider the time and cost
of further proceedings and the fact that such proceedings would interfere with
the sound management of LVMH’s investment in Hermès.
These priorities have led LVMH to decide to bring a definitive conclusion to
the AMF proceedings. In the same spirit, LVMH will take all necessary action
to end the baseless legal proceedings being pursued by Hermès management and
to recover compensation for the serious harm their actions have caused.
LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a
portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot
Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Hennessy, Glenmorangie,
Ardbeg, Vodka Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes,
Cheval des Andes, Green Point, Cape Mentelle, Newton, Wen Jun. Its Fashion and
Leather Goods division includes Louis Vuitton, the world's leading luxury
brand, as well as Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio
Pucci, Donna Karan, Marc Jacobs and Berluti. LVMH is present in the Perfumes
and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy,
Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies
(BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also
active in selective retailing as well as in other activities through DFS,
Sephora, Le Bon Marché, Samaritaine and Royal Van Lent. LVMH's Watches and
Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith,
Fred, Hublot and De Beers Jewellery, a joint venture created with the world’s
leading diamond group.
Analysts / Investors:
Chris Hollis, + 33 1.4413.2122
Michel Calzaroni/Olivier Labesse/
Sonia Fellmann/Hugues Schmitt, + 33 1.4070.1189
Claire Maloney, + 44.207.307.5341
Michele Calcaterra/Mateo Steinbach, +39.02.8905.5101
James Fingeroth/Molly Morse/
Anntal Silver, +1.212.521.4800
Kekst and Company
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