As many of you may have already read, roughly a week and a half ago the AMF ruled in favor of Hermes which provides the 3 family branches that own the majority of Hermes to pool together and have a defense against a possible take over from LVMH by creating a holding company. The new holding company comprised of many of the individual family members could protect against unwanted purchasers of stock by giving it the right to give first refusal to prospective buyers.
There is additional trouble with this ruling however; the other day on January 17th, it was announced that the minority investors in Hermes are now appealing to annul the AMF's decision.
Only time will tell if this latest move will deter LVMH. Many say the French fashion conglomerate may just continue to bide its time.
To be continued...
To read more you can follow the story on bloomberg:
http://www.bloomberg.com/news/2011-01-06/hermes-wins-amf-ruling-on-new-holding-company-strengthening-lvmh-defense.html
http://www.bloomberg.com/news/2011-01-17/hermes-investors-appealing-family-s-lvmh-buyout-defense-waiver.html
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