AMF

Today the AMF, the French securities regulator, approved the defensive plan of a group of Hermes family shareholders to pool their stock to create a holding company for over 50% of the company equity without having to make a public tendor offer for other minority shareholdings. Given that the holding company has been engineered solely to make it impossible for LVMH, which before Christmas announced they owned over 20% of Hermes shares, to acquire a majority of the heritage brand, this seems to me to imply the belief that 1) the AMF accepts Hermes’ position that LVMH does not have the best interests of the brand at heart, but just Wants To Make Money (horrors!); and 2) Hermes has somehow transcended product status to become synonymous with France, or a certain French heritage/craftsmanship, and the regulators think this deserves protection like any monument.
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