The founding family of Hermes International SCA didn’t sell a block of shares in the French maker of Birkin bags and silk scarves to LVMH Moet Hennessy Louis Vuitton SA, according to an Hermes executive.
LVMH, the world’s largest luxury-goods maker, increased its stake in Paris-based Hermes to 17.1 percent, exercising options it already held, LVMH said today in a statement. LVMH said Oct. 23 it owned 14.2 percent of the maker of Birkin bags and derivative instruments for another 2.9 percent of Hermes, at a total cost of 1.45 billion euros ($2 billion). LVMH didn’t say how or from whom it bought the stake.
“While some family members make small trades from time to time, to our knowledge, no one from the family has sold a significant amount of shares,” Patrick Albaladejo, Hermes vice president of strategic development and image, said yesterday in a phone interview. “Hermes didn’t know about it.”
Hermes fell as much as 25.85 euros, or 13 percent, to 177 euros, the biggest intraday drop since at least 1993, and traded at 179.15 euros as of 4:02 p.m. in Paris trading. The stock rose 15 percent yesterday.
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