Shares in Hermes and LVMH jumped on Monday after LVMH revealed over the weekend that it had built up a stake of 17.1 percent in its smaller rival.
LVMH – which is the world’s top luxury goods group – said it is not planning a takeover of Hermes, best known for its printed silk scarves.
Family members own more than 70 percent of Hermes shares and the firm is a limited partnership making a takeover difficult.
Hermes deputy chief executive Patrick Albaladejo, in charge of strategy, has revealed that the company was given no advanced notice of the increased shareholding by LVMH. He said “We are very surprised.”
LVMH said it fully supported Hermes’ strategy and would not seek board representation.