Large family controlled companies, once common, are now less common. One of the most prominent is the luxury goods maker Hermes International SCA which is 73% controlled by the Hermes Family.
In October LVMH Moet Hennessy Louis Vuitton SA revealed it had built a 17% stake via equity swaps. Hermes is not taking the threat lying down, however:
Bloomberg: Hermes International SCA’s family shareholders sought to bolster their defense against a possible takeover by LVMH Moet Hennessy Louis Vuitton SA by setting up a holding company for more than 50 percent of the share capital. The proposed holding company will have first right of refusal on the remaining shares held directly by the family, Hermes said in an e-mailed statement late yesterday. The family “have reaffirmed their unity and their confidence in the solidity of their current control of Hermes.” The commitment to create the majority holding is “irrevocable.”
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
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