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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.
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Hermès is a familycontrolledLuxury brand and intendstoremain so
LVMH versus Hermès: Case Questions • 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? • 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? • 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? • Find out the recent development of the case.