LVMH Invests 14.2% Stake in Hermes

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Whilst Paris, France is under siege because rioters are protesting the latest rises in tax and retirement age imposed by President Sarcozy, it seems business is carrying on as usual at Louis Vuitton Moet Hennessey.

For, it has just been announced that LVMH, the worlds leading luxury group, has invested a 14.2% stake in Hermes International which translates too 15,016,000 shares. That mean's that LVMH is investing is Euro 1,288,372 billion. That's a lot of Birkin's!

However, LVMH only want, it appears, a slice of the profits, as it seeks no formal take over and fully supports the strategic implementation of Hermes, made by the founding family and management. Yet, LVMH also holds derivative instruments which will see the share increase to 17.1% meaning the overall share would be set at 18,017,246 or Euro1.45 Billion.

It appears in the midst of the financial turmoils France is enduring, the battle of the bags is on. And whilst I am awaiting Carla Bruni, wife of the President, to declare 'Let them eat cake', it appears to be more of a case of 'let them buy Birkins'.
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