Case 2: Luxury Wars – LVMH

versus Hermès
The takeover attempts by LV
Hermès is a family controlled Luxury
brand and intends to remain so
Press release:
Strategy to fend off the takeover
The market reactions to
LVMH’s Announcement
 LVMH versus Hermès:
Case Questions

1. Hermès International was a family-owned business for

many years. Why did it then list its shares on a public
market? What risks and rewards come from a public
listing?
2. Bernard Arnault and LVMH acquired a large position in
Hermès shares without anyone knowing. How did they
do it and how did they avoid the French regulations
requiring disclosure of such positions?
3. The Hermès family defended themselves by forming a
holding company of their family shares. How will this
work and how long do you think it will last?
4. Find out the recent development of the case.