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French watchdog AMF to probe LVMH stake in Hermes

  • French markets watchdog AMF is to examine whether to impose sanctions on luxury company LVMH for its stake-building in rival Hermes early next year, the AMF's head said on Monday.

    "(The case) will be examined by our sanctions committee, I believe, in the first few months of 2013," Gerard Rameix said.

    A spokesman for LVMH stated this was normal procedure, adding the company was "confident" in the outcome of the case.

    Hermes turned to the AMF after LVMH's revealed October 2010 that it had quietly increased its stake to 14 percent in the luxury brand.

    It did so by using derivatives that provided it with a loophole to avoid disclosure rules.