The French Monetary Authority Considers The Application Of Exemption From Hermes Equity Concentration.

2011/1/7 10:30:00 42

On the evening of January 4th, the French financial market regulator (AMF) will consider the application of exemption submitted by Hermes on Thursday (6).

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The family members have concentrated their shareholdings, holding over 50% stake in a single shareholder without having to make a comprehensive offer to other shareholders, thereby resisting hostile takeover by rival Louis Weedon (LVMH).

It is reported that there will be a meeting of 6 members of the AMF to discuss the matter. It is not likely to announce the resolution immediately after the meeting. If the committee considers that this application needs further information, the final result may be released in 15 days.

Since 2008, Louis Weedon has been careful to operate.

Hermes

Share holdings rose from 17.1% to 20.21%.

Hermes

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This is uneasy, but unfortunately they have not succeeded in persuading the latter to divest.

The Hermes family now has about 60 members, holding a total of 73% Hermes shares, but its shareholdings are relatively scattered.

So, the Hermes family decided to set up a holding company a month ago to focus on the shareholding of family members and master the controlling rights of a company as a single shareholder.

However, according to the French regulation, when a single shareholder holds a holding level of more than 33%, it is necessary to make a comprehensive offer to other shareholders. Unless AMF is granted immunity, Hermes has submitted an application for exemption to AMF.

The outcome of the application has yet to be conclusive. However, the French small shareholders association has said it opposes AMF's application through the Hermes family.