LVMH Chief Executive Arnault Says Didn't Expect to Become Hermes Investor
LVMH Moet Hennessy Louis Vuitton SA Chief Executive Officer Bernard Arnault said the company did not expect to become a shareholder in Hermes International SCA and that it did so because of “technical reasons.”
LVMH supports the management and founding family at Hermes, who have a controlling stake in the Birkin bag maker, Arnault said at a press conference in Paris today. He understands that the family was “a bit surprised” by LVMH’s stakebuilding.
LVMH unveiled a stake in Hermes in October and now owns 20.2 percent of the maker of silk scarves and Kelly bags. The company’s investment in Hermes is “friendly,” and “peaceful,” according to Arnault. That doesn’t mean the shareholding will be “passive,” he added.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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