Hermes'S Response To LVMH'S Acquisition Of Stock Rights Is Coming To An End. Results Will Come Out At The End Of This Month.

< p > a survey recently completed by the French Financial Market Authority revealed that Louis Weedon, France's largest luxury goods manufacturer, has secretly studied and implemented a plan to control France's other luxury maker, Hermes, from the end of 2006.

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< p > French media recently quoted the report that from 2001 to 2002, Louis Weedon acquired 4.9% of the shares of Hermes through the enterprises in Luxemburg, the United States and Panama, but these shares were listed on the financial statements inconsistent with international standards, and the appendix did not show any information.

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< p > the report points out that in December 2006, when Hermes was pferred to power by Jean Louis Dimann, who was the then president, Louis Weedon and Rothschild bank and the company of the law of PLAD PRA jointly studied the scheme to control Hermes, and in 2007, he decided to take a complicated stock swap operation to increase the shareholding of Hermes.

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< p > according to this plan, Louis Weedon conducted a series of stock swap operations with three French banks. He bought three Hermes convertible derivatives from three banks, then converted derivatives into common stocks, and finally paid the bill by Louis Weedon.

As pactions are carried out through cash, according to the original rules of French financial paction management, the relevant pactions can not be disclosed.

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In October 2010, when Louis Weedon finished his final operation, he suddenly announced that he had purchased 17.1% of Hermes shares, and then announced that he would increase his holdings of Hermes in December 2011 to 22.28%, becoming the largest single shareholder outside the Hermes family heir. P

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< p > Hermes openly opposes Louis Weedon's stake in the group and believes that Louis Weedon has not issued a notice in accordance with the relevant provisions to increase the shares and exceed the voting rights limit, and asks the French financial market authority to conduct an investigation of its shareholding operations.

The Hermes family successor then announced a 51% stake and set up a holding company to counter Louis Weedon's possible takeover actions.

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After the publication of the P report, Louis Weedon issued a statement that the newspaper "illegally leaked" the investigation report of the French financial market authority, stressing that only the sanctions committee of the authority has the power to decide whether the operation of the group is illegal.

The French financial market authority and Hermes did not respond on the same day.

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< p > it is reported that the French financial market authority sanctions committee will review the irregularities of Louis Weedon's holdings of Hermes shares at the end of this month to decide whether to punish Louis Weedon.

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