Déborah AISSA – Martin DELENS - Hortense GAUDIN
LVMH vs Hermès
1. Why HERMÈS did an IPO? What risks and rewards?
2. How did LVMH acquired Hermès shares & avoid the French regulations?
3. How the H51 will work and how long do you think it will last?
4. Recent development of the case
QUESTIONS
INTRODUCTION
INTRODUCTION
Created in 1837
In 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
HERMÈS INTERNATIONAL IPO
RISKS REWARDS Weaken the family control Hostile acquisition Cultural and management
differences/ incompatibility Artisanal essence
compromised Activities fragmented Brand image ruined
Expand the company Increase its way of financing Enriched the family
members Since the IPO :- Turnover x 8- Operating Result x 23
HERMÈS INTERNATIONAL IPO
French Regulations
The symbolic line of 5% The Mercury Project 2006: the plan of Natixis (cash settled equity swaps) 2010: the official announcement
THE 12 YEAR SECRET PLAN OF LVMH
LVMH conviction: 8 millions euros fine by the AMF Accusation: hidden all stages of a stake in the capital of
Hermes LVMH has decided to not appeal his conviction A criminal complaint filed by Hermès against LVMH is
under investigation
RECENT NEWS
THANK YOU FOR YOUR ATTENTION