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LVMH plans to redistribute Hermès shares next month

LVMH Moët Hennessy – Louis Vuitton and Hermès have settled a dispute via a plan to redistribute shares.

LVMH group has said it will redistribute the shares it owns in Hermès to LVMH shareholders on December 17.

According to the terms of this agreement, LVMH has agreed to distribute to its shareholders all of the Hermès shares held by the LVMH group on the understanding that Christian Dior, which currently holds 40.9% of LVMH’s share capital through Financière Jean Goujon, will distribute the Hermès shares that it receives from LVMH to its own shareholders.

It ends a four-year battle which has become known as the ‘handbag’ wars which started when LMVH revealed it had built up a 17% stake in Hermès, made through a series of equity derivatives instead of straightforward share purchases, which meant it did not need to declare them. Hermès accused LVMH of a stealthy takeover bid.

LVMH’s board of directors had already announced it would distribute an interim cash dividend of €1.25 per share for the 2014 fiscal year, which will be paid on December 4.

Following the completion of these transactions, LVMH, Financière Jean Goujon and Christian Dior will no longer hold any Hermès shares with the exception of Hermès shares representing rights to fractional interests or non-distributed shares due to the distribution ratio. These shares will be sold no later than September 3, 2015.

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