Global luxury retailer LVMH increases stake in Hermès

LVMH said Tuesday it had increased its stake in smaller rival Hermès again amid growing speculation, denied by LVMH, that it was planning a bid for control.

Reuters / Pascal Rossignol

LVMH, the world's leading luxury group marketing brands such as Louis Vuitton, Givenchy, Dom Perignon and Dior, said it had bought about three million Hermès shares to take its stake to 17.1 percent.

On Saturday, LVMH raised its holding to 14.2 percent from less than five per cent, leading experts to believe it was building up a position for a possible takeover.

Heirs of the founding Hermès family, who own 70 per cent of Hermès, said Sunday they had no plans to sell any of their stake and had not sold any shares to LVMH.

Shares of both Hermès and LVMH recorded sharp gains on Monday but lost ground on Tuesday on profit-taking.