LVMH vs Hermès. Déborah AISSA – Martin DELENS - Hortense GAUDIN . QUESTIONS. Why HERMÈS did an IPO? What risks and rewards? How did LVMH acquired Hermès shares & avoid the French regulations? How the H51 will work and how long do you think it will last ? - PowerPoint PPT Presentation
Text of LVMH vs Hermès
Dborah AISSA Martin DELENS - Hortense GAUDIN LVMH vs Herms
Why HERMS did an IPO? What risks and rewards?
How did LVMH acquired Herms shares & avoid the French regulations?
How the H51 will work and how long do you think it will last?
Recent development of the case
Created in 1837In 1993 they listed 25% of its voting shares :Support the long term development of the company Make shares easier to trade for the shareholders
Can we go a little public ?IPO Open the door to news investors
HERMS INTERNATIONAL IPO
5RISKSREWARDSWeaken the family control Hostile acquisition Cultural and management differences/ incompatibilityArtisanal essence compromisedActivities fragmented Brand image ruined
Expand the companyIncrease its way of financingEnriched the family membersSince the IPO :Turnover x 8 Operating Result x 23
HERMS INTERNATIONAL IPO6French Regulations
The symbolic line of 5%The Mercury Project2006: the plan of Natixis (cash settled equity swaps)2010: the official announcement
The 12 year secret plan of LVMH
9LVMH conviction: 8 millions euros fine by the AMFAccusation: hidden all stages of a stake in the capital of HermesLVMH has decided to not appeal his convictionA criminal complaint filed by Herms against LVMH is under investigation