Hermes Boosts LVMH Defense With New Holding Company

Hermes International SCA’s family shareholders sought to bolster their defense against a possible takeover by LVMH Moet Hennessy Louis Vuitton SA by setting up a holding company for more than 50 percent of the share capital.

The proposed company will have first right of refusal on the remaining shares held directly by the family, Hermes said in an e-mailed statement late yesterday. The family “have reaffirmed their unity and their confidence in the solidity of their current control of Hermes.” The commitment to create the majority holding is “irrevocable.”