LVMH Hit With €8M Fine Over Stealthy Hermes Stake Buy

Law360, New York (July 1, 2013, 8:17 PM EDT) -- Luxury goods conglomerate LVMH was hit with an €8 million ($10.4 million) fine by French stock market regulators over some controversial tactics it used to quietly acquire a minority stake in Hermes International SA.

The Autorite des Marches Financiers in France pointed to LVMH’s use of equity swaps — a type of financial derivative contract — to stealthily buy 17 percent of Hermes' capital. The regulator said that LVMH’s equity swap transactions, which allowed it to quietly boost its stake in Hermes from 4.9 percent in...
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