French luxury group LVMH Moet Hennessy Louis Vuitton has raised its stake in rival Hermes International SCA to 22.28% from 21.40%, according to a filing with the French market regulator, Autorite des marches financiers (AMF).
LVMH's voting rights in Hermes have therefore increased to 16% from under 15%. The rise in the proportion of its voting rights results from the increase in LVMH's stake and a decrease in the total number of voting rights of Hermes.
Hermes wasn't available to comment on the reasons for the decrease in the total number of its voting rights.
In the filing, LVMH also said it isn't planning to request its nomination or the nomination of one of its representatives to Hermes' board in the next six months. According to AMF, is considering buying more of the rival's shares depending on circumstances and the market situation, reported trade publications on Wednesday.
It is worthy a remind that LVMH has been gradually increasing its holding in Hermes since it was revealed 14 months ago that it had built up a surprise 17 percent stake.
In exchange, and in order to avoid a takeover, the Hermes family members recently created a holding company controlling 50.2% of the company's shares. They had decided earlier this year to lock up their shares in the holding company so that any intent to take over the company would require the approval of a majority of them.
LVMH's shares were trading 1.5% higher at EUR106.05, while Hermes' shares were up 1% at EUR215.80.