LVMH fine of 8 million euros in play Hermes

       Financial Market Authority of France said on Monday it was a fine luxury conglomerate LVMH a record € 8 million ($ 10.4 million) for failing to inform the markets raised their share of elite handbag and scarf maker Hermes.

"Taking into account the" seriousness of the violations of the successive requests to the disclosure, which consisted of concealing every step of the stakebuilding LVMH Hermes, the Committee has conducted an 8-million-euro fine on LVMH "he said a statement issued by the AMF under Relying on the decision.

LVMH immediately said he planned to appeal, called the decision and the size of the fine "completely unjustified."

The two companies have been in a bitter feud since LVMH, Louis Vuitton dominates the disabled and dozens of other luxury brands, which resulted in the end of 2010, that he has secretly built a 17-percent in the Hermes family.

LVMH, Bernard Arnault magnate, later built up to this stake to 22.6 percent Hermes incentive cry foul and complain Arnault secretly trying to add to his great Hermes stable brands conducted.

The problem with AMF, LVMH used as swap agreements with three banks in amounts below the mandatory disclosure rules.

While he conceded that none of the offers injured in isolation disclosure requirements, the AMF found there was no business justification as structured and put together a violation.

LVMH said he should have informed markets in 2008 and 2009 to the offers in the consolidated financial statements because it had the responsibility report, preparations for transactions that have an impact on stock prices.

In addition, the company LVMH should have disclosed when he agreed in June 2010 to settle swaps and purchase shares in Hermes.

The decision of the Committee under the law of the AMF said the "circumvention of the rules to ensure the transparency, which is so important for orderly markets, interruption should be punished to the same extent as they caused."

The order is sought by the investigators a record for AMF, but less than € 10 million.

"This decision is consistent with the position of Hermes," said a member of the Entourage Hermes.

Last month, Hermes began to get a legal battle offers exchange conversely, accused LVMH and three banks - Societe Generale, Credit Agricole and Natixis - say the transactions amounted to fraud.

If the fine is not confirmed, it will have little impact on the finances of LVMH, as the company reported net income of € 3.4 billion last year on sales of 28 trillion 1.
"However, it is the image of the group a little spot" said Serge Carreira, a specialist in the luxury segment at Sciences Po University in Paris, although he is primarily a history and French is not an "international event".