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Replica Hermes Handbags The move will see LVMH which owns champagne brand Moet Hermes Replica Bags, Hennessy spirits and leather goods brand Louis Vuitton eventually hold a 17.1 percent stake in Hermes hermes replica bags, which is known for its high end leather handbags and silk scarves.”The objective of LVMH is to be a long term shareholder of Hermes and to contribute to the preservation of the family and French attributes, which are at the heart of the global success of this iconic brand,” LVMH said in a statement on Saturday.LVMH said it had bought 15,016,000 shares of Hermes, or a 14.2 percent stake. Once it converts certain derivative instruments of Hermes shares, LVMH said it would hold a total of 18,017,246 shares, or a 17.1 percent stake.Hermes could not be reached for comment; the group’s spokeswomen did not return calls and emails on Saturday.The surprising move is likely to trigger questions over the intentions of LVMH’s CEO Bernard Arnault. The French businessman took control over LVMH in 1990 after three years of internal power struggle and has often expanded its reach through acquisitions of iconic brands.Hermes, which has held up better than peers in the economic downturn, has long been the subject of market speculation over whether some family members would sell shares, altering the group’s capital structure or even making it a takeover target.Management have reiterated the founding family’s devotion to Hermes, in which family members own a 70 percent stake as of the last available public data.It was not immediately clear how LVMH had built up such a large stake in Hermes, or whether it had bought shares on the open market or from family members.Based on the information given in its statement on Saturday, LVMH seems to have acquired the 17.1 percent stake for an average share price of 80.50 euros per share.That is significantly lower than the recent price range for Hermes shares Hermes replica, which have traded above 100 euros per share for most of 2010, and could mean that LVMH bought some of its shares much earlier or via negotiated options contracts with family members or other shareholders.Hermes shares have risen 88 percent since the beginning of the year to close at 176.20 euros per share on Friday.It also means that Arnault has already seen a significant upside to his investment in Hermes.”LVMH fully supports the strategy implemented by the founding family and the management team Replica Hermes Handbags.

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