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LVMH in a ‘Waiting Game’ for Hermes, Analysts Say

LVMH Moet Hennessy Louis Vuitton SA said it’s not seeking a takeover of Hermes International SCA after agreeing to buy a 17.1 percent stake for 1.45 billion euros ($2 billion). Analysts aren’t convinced.

LVMH said Oct. 23 it doesn’t intend to launch a tender offer, take control or seek board representation at the maker of Birkin bags after announcing it owns 14.2 percent of Paris-based Hermes, with the option to increase the stake to 17.1 percent. LVMH didn’t say who sold the holding in Hermes, whose stock is mainly held by members of the founding family.