LVMH has decided to terminate the AMF proceedings in relation to its acquisition of approximately 10% of Hermès’ share capital in October 2010. This decision reflects LVMH’s commitment to ensuring the soundest possible management of its investment in Hermès. To this end, LVMH will not appeal the 25 June 2013 decision of the AMF’s disciplinary commission.
Throughout its proceedings, the AMF expressly confirmed that in acquiring its equity stake in Hermès, LVMH never breached regulations regarding ownership thresholds or engaged in insider trading or market manipulation.
The AMF’s only criticism, (other than in relation to certain accounting records which the AMF confirmed had no impact on LVMH’s annual accounts), concerned the timing of LVMH’s disclosure of the Hermès equity swaps, which the AMF considered should have been made in June, rather than October, 2010. The AMF argued that LVMH reached an agreement with two of the three banks involved in June 2010, when in fact the agreement was not achieved until October. As promptly remarked by eminent observers, the AMF disciplinary commission’s position is therefore highly questionable, both in law and in fact.
As a result, LVMH would be entirely justified in appealing the disciplinary commission’s administrative decision, as envisaged at the time it was announced. However, the interests of LVMH’s shareholders go beyond the defence of these legal principles. Instead, LVMH must also consider the time and cost of further proceedings and the fact that such proceedings would interfere with the sound management of LVMH’s investment in Hermès.
These priorities have led LVMH to decide to bring a definitive conclusion to the AMF proceedings. In the same spirit, LVMH will take all necessary action to end the baseless legal proceedings being pursued by Hermès management and to recover compensation for the serious harm their actions have caused.
LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Hennessy, Glenmorangie, Ardbeg, Vodka Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton, Wen Jun. Its Fashion and Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs and Berluti. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Jewellery, a joint venture created with the world’s leading diamond group.
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