Back in 2010 French Billionaire Bernard Arnault of the Moet Hennessy Louis Vuitton (LVMH) brand led LVMH to merge with the Hermes International brand and bought 17 % stake of shares becoming a stakeholder. Today, that number has grown to 22 % stake of shares.
Fearful of a takeover by LVMH, Herme's complaint alleges that Arnault's moves were the product of insider trading, collusion, and price manipulation. In order to avert the threat of a takeover, the Hermes family created a new holding company controlling 52 shares. However, Arnault continued to buy shares. As a result, this July, Hermes filed complaint. Moreover, in response to the complaint, LVMH company representative said "LVMH has no intention of launching a tender offer, taking control of Hermes or seeking board representation."
In response, LVMH has filed a counter complaint alleging slander, blackmail, and unfair competition.
Fashion Legallaire's Assessment: LVMH is known for brand takeovers from Donna Karan International to Glenmorangie Plc., and Hermes fears that he could be one day bought out acquisition style if Arnault continues to buy shares.