Hermès said on Tuesday they had filed a complaint on July 10 against LVMH over LVMH's building of a stake of over 20 percent in its smaller peer. "It is the logical consequence of the questions raised by the terms of LVMH's entry in the capital," a Hermès spokeswoman told Reuters. After gradually increasing its stake since 2010 (17 percent at that time) in Hermès, LVMH currently owns 22.3 percent in the French luxury manufacturer and has 16 percent of the voting rights. According to people cIose to Hermès, the complaint is understood to relate to claims of insider trading, collusion and price manipulation. In a statement, Hermès said it had filed the case in July, adding: “This complaint relates to the terms in which LVMH became a stakeholder in Hermès International.” For its part, LVMH said in a statement: “By filing its complaint, Hermès seeks to bypass the appropriate AMF channels without waiting for the result of the official inquiry and without determining the extent of the AMF’s findings to date. “In addition, the filing carries serious and unfounded accusations about market failings. “For its part, LVMH strongly reaffirms that the acquisition of its stake in Hermès was entirely legitimate and that, unlike Hermès, it awaits the outcome of the AMF inquiry with complete peace of mind. LVMH has no doubt that the inquiry will determine that the Hermès allegations are false and serve no other purpose than to slander and unlawfully undermine another firm in the same industry.”Source: Fashion United
