LVMH has beenordered to pay a fine of €8 million (￡6.8 million), by France'sstock market regulator, AMF, over the controversial acquisition ofits stake in Hermès- the highest fine it has ever imposed. Itwas first recommended that the maximum fine be given last month,but the final decision was announced last night.
The luxury conglomerate, helmed by Bernard Arnault, Cheap Jordan Retro shoes has alreadymade clear that it plans to appeal the decision. "The veryprinciple of the sanction and, even more so, the amount of the fineare completely unjustified in this case," a spokesperson toldWWD. No comment has yet been made from Hermes.
According to reports, AMF announced its decision on June 25, butonly made the information public on July 1. The committee foundthat LVMH was guilty of "failing to inform the market that it waspreparing to raise its stake in Hermes and of having breached itsdisclosure requirements when publishing its consolidated financialstatements for 2008 and 2009".
LVMH and Hermèshave been embroiled in an on-going legalbattle since LVMH first announced that it had a stake in the brandin October 2010. The luxury conglomerate was accused of concealingits gradual acquisition of Hermès International holdings - whichnow stands at 22.3 per cent - through cash-settled equity swapsdating back to 2001 Jordan Retro women shoes.
LVMH strongly denied investing via questionable means, arguingthat the company did not slowly and secretively accrue shares. Theluxury firm's lawyer, Georges Terrier, and vice president PierreGodé called for the case to be annulled, saying that it wasimpossible for the committee to come to an unbiased decision basedon Hermès' recent "damning media campaign" against the company.