1. Case 2: Luxury Wars – LVMH versus Hermès

2. The takeover attempts by LV

3. Hermès is a family controlled Luxury brand and intends to remain so

4. Press release:

5. Strategy to fend off the takeover

6. The market reactions to LVMH’s Announcement

7. 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.