French luxury brand Hermes has called for courts to open an inquiry into luxury goods group LVMH’s acquisition of Hermes shares.
In July Hermes filed a complaint with a Paris prosecutor, which addressed “the way in which LVMH entered the capital of Hermes”. According to reports there has been allegations concerning insider trading and manipulation of the share price.
However LVMH, which owns brands including Louis Vuitton and Marc Jacobs, has hit back filing a counter complaint for slander, blackmail and unfair competition.
The dispute between the two companies has been long running. In 2010 LVMH revealed it had bought a 17.1% stake in the French company and Hermes has repeatedly called for LVMH to withdraw. However LVMH has continued to acquire shares and now owns a 22.3% stake although chairman and chief executive officer Bernard Arnault has said he is not seeking full control of Hermes.