Monday, October 25, 2010

Summary Box: Hermes family vows to keep control

DON'T MESS WITH HERMES: The Hermes family vowed to keep control of its famous luxury French scarf and handbag company after rival LVMH Moet Hennessy Louis Vuitton purchased a minority stake. THE PURCHASE: LVMH, known for its Louis Vuitton handbags, purchased a 14.2 percent stake last week in the Hermes International holding company and indicated it intends to exercise options that will raise its stake to 17.1 percent. THE DEFENSE: The Hermes family called LVMH's action "unsolicited" and insisted it was "perfectly unified." The family owns 75 percent of the company, with the remainder listed on the Paris stock exchange.

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