Hermès International SCA will sue rival luxury group LVMH seeking the annulment of equity swaps that LVMH used to secretly amass a stake in Hermès, the company said, confirming a newspaper report.
According to French daily Les Echos, Hermès argues that LVMH had the intention to acquire Hermès shares as soon as it bought equity swaps in 2008. Those swaps were supposed to be settled in cash, but ended up being settled in Hermès shares.
A Hermès spokeswoman confirmed the newspaper report but gave no further details.
Hermès owners have fought tooth and nail against LVMH, the luxury vehicle of billionaire Bernard Arnault, since it revealed in 2010 that it had secretly built up a 14 percent stake in Hermès. This was later increased 22.6 percent.
The 175-year-old maker of Birkin and Kelly handbags, founded in Paris by Thierry Hermès as a harness workshop, has challenged the legality of the stealth stake-building in a court procedure and asked the regulator to intervene.
LVMH has consistently denied any wrongdoing.