LVMH fined $10.4M for Hermes share purchases
Jul. 01, 2013
PARIS (AP) — France's market regulator is fining luxury conglomerate LVMH Moet Hennessy Louis Vuitton 8 million euros ($10.4 million) for not disclosing its intention to build up a significant stake in handbag and scarf maker Hermes.
The AMF said Monday that LVMH was too slow in revealing its stake, which was built by using foreign subsidiaries. Large transactions are supposed to be disclosed quickly since they can affect share prices.
LVMH raised its stake in Hermes to 14.2 percent in 2010, to the apparent dismay of the Hermes family. Hermes has accused the luxury giant of insider trading, claims the Paris prosecutor's office is investigating. LVMH, which since increased its stake to 22.3 percent, has called those charges unfounded but did not immediately respond to requests for comment on the AMF's decision.