Hermes And LV'S Love And Hatred Are Comparable To The Movie Infernal Affairs.

Recently, according to the agreement with Herm s, the world's largest luxury giant MOET & CHANDON LVMH Hennessy has finally decided to redistribute its 23% of Hermes shares to its shareholders.

On the 17 day of the local news, Hermes opened up 6.5% earlier, while its rival LVMH group's share price fell by 7.4%.

LVMH chairman Bernard Arnott (Bernard Arnault) has been trying to put the family business Hermes into the LVMH group's bag. Some people describe Arnott's integration style. "He has plenty of money. His dream is to get France first and Italy first to her bosom. In fact, he doesn't care about money. Hermes is like a beautiful woman. He must marry to go home.

"As early as 2001, LVMH bought the 4.9% of Hermes group for the first time and continued to increase its holdings thereafter.

In 2008, LVMH began a series of equity trading operations with three French banks, buying the convertible derivatives issued by Hermes group and exchanging common stocks.

Because pactions were paid in cash, LVMH was privately owned by the Hermes group under the protection of the French financial paction rules.

3 and 2010: LVMH became the second largest shareholder of Hermes company except family.

In France, on October 24, 2010, LVMH announced publicly that through the cash settled equity swap, 14.2% of the shares of Hermes were purchased, plus the convertible derivative instruments, with a total holding amount of 17.1%, becoming the second largest shareholder of Hermes in addition to the family.

The news undoubtedly threw a blockbuster. LVMH circumvented the requirement for the company to announce the stock repurchase, which surprised the market.

In addition to watching the bustling ordinary people and the Hermes family themselves, they were not known until an hour before the announcement of the LVMH group.

Since then, relations between the two luxury goods suppliers have been strained.

4 and 2011: Hermes has started the war of share ownership.

By 2011, LVMH had held 23% of Hermes, most of whom were secretly bought.

The LVMH series has enraged the succession of the Hermes family, which has publicly stated that it will not sell shares in any form in the future to ensure that the Hermes family has absolute control over the brand. In 2011, it gathered and froze about 51% of its stake and established a holding company to fight the acquisition challenge from LVMH.

At the same time, the Hermes group also launched a series of legal rights protection actions, such as in July 2012 to the Paris procuratorate to submit a petition, accused Louis Weedon through the "insider trading", "collusion" and "manipulation of stock prices" and other unconventional means to increase Hermes shares.

Since then, the two companies have been involved in legal disputes for four years.

In May 2013, the financial market authority decided that Louis Weedon's holdings of Hermes shares were opaque, representing serious misconduct that could be regarded as "fraud".

In July 7th, AMF, the French market regulator, announced that LVMH would be punished 8 million euros ($10 million 400 thousand) for its proper disclosure due to its large stake in rival Hermes.

At that time, it was the highest penalty imposed by AMF in history.

6 / 2014: signing a cease-fire agreement through equity redistribution

This year, the stock litigation between the two major luxury goods groups came to an end.

Under the suggestion of the Paris commercial court, Arnott agreed to hand over 23% of the Hermes shares held by the group, worth about 6 billion 400 million euros (about $7 billion 940 million), and promised not to buy Hermes at least in the next five years.

LVMH's Hermes shares will be redistributed between its shareholders and institutional investors.

After distribution, Arnott holding Arnault group will hold 8.5% of Hermes.

LVMH's largest holding group, DIOR group, will redistribute its shareholders to Hermes shares.

In this regard, the "interface" interpretation of the LVMH said this time to let the shares have a great delaying tactic of taste, "five years of agreement" also for the subsequent merger left possibility.

"It seems that the love and hate of the two groups have not ended yet.

"