Translation of the second bag net made ​​war

Cristina Guo
on 2011-05-01 00:51:35 Translation | has 858 View | There are 6 comments

Arnold's courtship of Hermes war. ON HIS way to creating the world's biggest luxury group and becoming the richest man in France, Bernard Arnault has made a career of swallowing grand, family-owned businesses. Over the years he has picked many a fight with founders of luxury firms, or their heirs, who were unwilling to sell. He also fought bitterly and unsuccessfully with François Pinault, his archrival, over the takeover of Gucci, an Italian fashion house. The French press called it the Bernard Arnault are creating the world's largest luxury goods group, and became the richest man in France,Louis Vuitton Online Outlet, he has to annexation of a large family business that a lot of work. Over the years, he and those unwilling to sell their luxury goods company founder or heir to a number of confrontation. He also Pinault and his main rival in the battle Gucci (an Italian fashion brand) on the control of bitter confrontation, but did not succeed. French media called that it had amassed a 17.1% stake in Hermès, a family-owned maker of silk scarves and expensive handbags. On December 21st LVMH said it had increased its stake to 20.2%.
three months ago, Mr. Arnold began his The most long and most impressive acquisition war. In late October, Arnold's group Moët Hennessy Louis Vuitton announced that the group has occupied a Hermes (a production of silk scarves and expensive handbags family manufacturer) 17.1% of the shares. On December 21, the group said their stock share has risen to 20.2%. Mr Arnault's offensive took the descendants of Thierry Hermès, a saddlemaker who founded the company in 1837, by surprise. LVMH built the stake through cash-settled equity swaps with three banks that dated back to 2008, when the luxury industry was in a deep crisis. The use of these derivative contracts allowed LVMH to skirt disclosure requirements and produced a nice profit for Mr Arnault, who had bet on Hermès's stellar rebound.
Arnold's ambitions to 蒂埃里爱马仕 (a harness manufacturer in the Hermes company was founded in 1837) and later was surprised. Starting in 2008 Moët Hennessy Louis Vuitton on equity by way of cash and three certified bank equity swap, when the luxury industry is in crisis. The use of these derivative contracts to avoid making the Louis Vuitton of information disclosure requirements, as well as stocks rebound Arnold believes Hermes created a huge profit. The five dozen heirs who own 73% of Hermès are not happy about the intruder. They want the company to remain independent and keep its tradition of craftsmanship, which they fear would be lost in a big, commercially minded group like LVMH . On December 5th the family said they would create a holding company into which they would put 51% of Hermès's shares. It would have the right to buy out any member wanting to sell his stake. This involves a financial sacrifice, since those who put their shares into the holding will surrender part of their dividends so they can be used to buy out other members.
Hermes holds 73 percent shares of the successor of the 60 dissatisfied with the invaders. Hermes companies they want to remain independent and retain its traditional hand-made, they are worried about in a place like Moët Hennessy Louis Vuitton Group, such a large scale commercial, the Hermes will lose its independence and traditions. December 5, the family announced that they will invest 51% stake in Hermes created a holding company. The company wants to sell the right to buy shares of any shareholder. This will cause financial sacrifices, because those who put their stock holding company would give up a portion of their dividends to other shareholders to buy out members. Mr Arnault insists that his intentions are amicable. LVMH is aiming to be a supportive long-term shareholder of Hermès, and wants to contribute to the preservation of the group's Frenchness and its family-firm attributes. The family retorts that if his intentions were amicable, he would sell and go away. Patrick Thomas, the chief executive of Hermès, maintains that it does not need help or advice from LVMH, pointing out that Hermès shares have done better than those of LVMH since Hermès went public in 1993.
Arnold insisted that his aim is friendly, Moët Hennessy Louis Vuitton Hermes to become a long-term benefit of shareholders, and want the French to preserve the company's characteristics and qualities to help the family business. And the Arnold family is countered if the intent is friendly, then he will sell his holdings of shares and then roll too far. Hermes CEO Patrick Thomas from Louis Vuitton that they do not need help or advice, and pointed out that since 1993 has been listed in Hermes, Louis Vuitton, it is much higher than the dividend.
However united the Hermès heirs appear to be in their opposition to Mr Arnault, his prowling seems to have alarmed them, and it is conceivable that their united front may crumble. And to create the holding company they will need an exemption from having to make a mandatory tender offer for all shares from France's Financial Markets Authority (AMF). Colette Neuville, an influential French advocate of shareholder rights, has called on the AMF to block the family's move, arguing that it would put non -family minority shareholders at a disadvantage because the value of their shares would be reduced if a majority of the shares were locked up.

Hermes heirs seem to unite against Arnold, he seems to act in secret These heirs have been alert,Louis Vuitton Outlet, however, imagine that their united front may still collapse. In order to create holding companies that they will need to provide the French Financial Markets Authority to free from all taxes and stock to create a mandatory tender. Colette Neuville, an influential French shareholder rights advocates have called on the French Financial Markets Authority's move to stop the Hermes family, which he said a few non-family shareholders will be placed in a disadvantage, because most of the stock is freeze up, the shareholders of these non-family members share value will shrink. After Mr Arnault's latest swoop, only about 7% of Hermès's shares are traded on the stockmarket. Since the AMF has a duty to protect minorities' interests, the regulator may indeed block the plan.
In the recent Arnold After an onslaught, only about 7 percent of the stock is still traded on the stock market. Because the French Financial Markets Authority has the responsibility to safeguard the interests of minority shareholders, regulators may indeed stop the project. long game. Analysts at HSBC, a bank, say that he knows that he cannot take over Hermès without the approval of about 15 members of the fifth generation who are aged roughly 65-75; the analysts speculate that he is positioning LVMH for the succession of the sixth generation.
Bernstein Research's luxury goods analyst Luca Solca said, Hermes family inheritance that people may not have the necessary financial means to embrace the vitality and strength. Or Arnold would like to fight a protracted war, HSBC's analysts believe that Arnold realized that he was not able to get the family of the 15 fifth-generation heir can not succeed without the consent of the acquisition of Hermes, heir to the age of these probably 65 to 75 years old; The analyst speculated that the sixth-generation successor to Arnold to do the strategic plan. Bertrand Puech, chairman of Hermès and a family member, says the sixth generation is as committed to the continued independence of the maison as their forefathers were. But so were the heirs of Louis Vuitton, whose business became one of Mr Arnault's prize conquests.
Bertrand Puech, chairman of Hermes, but also a family member, he said sixth-generation heir who would like their father, as Hermes is committed to continued independence. LV's heirs have to do,Louis Vuitton Bags, but it has now become the spoils of Arnold's glory.