fashion house to create a family holding louis vuitton

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ERMES has won a nine-month battle to remain in the hands of its founding family after a French court ruling that effectively shields it against a takeover by its arch-rival LVMH. Shares in Hermes were suspended yesterday before the court's decision to uphold a ruling that allows the French fashion house to create a family holding Louis Vuitton M60067 company that will lock relatives in for 20 years. The company known for its silk scarves and Birkin bags that start at ?6500 ($9941), has been battling to ward off a potential takeover from Louis Vuitton M60094 Moet Hennessy, or LVMH, after what it saw as hostile stake-building by its Parisian neighbour. Bernard Arnault, France's richest man and the chairman and chief executive of LVMH, has made little secret of his admiration for the 174-year-old Hermes.

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In January, Hermes secured an exemption from the French stockmarket regulator, which meant that it would not have to buy out other shareholders to create a family holding Louis Vuitton M60825 company. However, small shareholders in Hermes objected to the exception. Yesterday's ruling clears the way for the creation of a holding company that will own 50.2 per cent of Hermes shares held by 52 family members. A Hermes family statement said: "The creation of this company, which will take place in the next few weeks, will strengthen the independence of the Louis Vuitton M60123 Group over the long term."

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End of sidebar. Return to start of sidebar. Only one third of family members will be able to sell their shares as of 2031. Thomas Chauvet, a Louis Vuitton M60883 goods analyst at Citigroup, said that Hermes' shares, which have soared 71 per cent since January on takeover speculation, were unlikely to be dramatically affected. "It's a limited free float. I don't think the drivers of the share price are necessarily what people think they are." LVMH said: "LVMH is a long-term shareholder in Hermes and fully Louis Vuitton M60895 of its founding family and management team."