LVMH awaiting a stake in Hermes?

I woke up to this e-mail: LVMH `Playing a Waiting Game’ for Hermes After Buying Stake, Analysts Say

LVMH has agreed to buy a 17.1% stake in Hermes, but says it is not looking at a takeover of the family company? REALLY? Something tells me this will happen at some point in time, but it really shouldn’t — I think Hermes stands to lose a lot of its brand if LVMH owns a majority stake in it. So as much as I love the conglomerate, fingers crossed, let’s do this another day.

Analysts also report that if LVMH is indeed looking to acquire a larger stake in Hermes, it can do so by divesting itself of its alcohol arm (Moet-Hennessy) via a sale to Diageo: such a change has been rumoured since I was in secondary school (and it’s been a long time since I was in secondary school). I haven’t really looked at the financial reports but I doubt LVMH will give up its MH in order to acquire Hermes.

OK so obviously there wasn’t much analysis in this because I spent the night before valuing another company — I could get used to this, I think.

This entry was published on October 25, 2010 at 2:04 am and is filed under Smart Things. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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