LVMH gets record fine of € 8,000,000 participation Hermes

  LVMH was sentenced € 8,000,000 by the French Financial for illegal gambling, he built luxury rival Hermes family - the largest fine ever issued by the AMF.

The Disciplinary Committee of the AMF said it made the decision after considering the "seriousness of the violations of consecutive public disclosure, [the] hidden capacity every step LVMH stake in Hermes was".

The dispute between the two since October 2010, when the luxury giant Bernard Arnault revealed that he running a 14.2% stake in Hermes accumulated. Under French financial system, he was forced to declare his assets in steps of 5%.

LVMH acquired the stake through a network of equity derivatives through its investment vehicle in Hong Kong and Luxembourg bought, or a vehicle mentioned in the annual reports of LVMH.

LVMH then these securities distributed in three banks, but ensures that no longer held an interest of 5%.

He then changed the terms of settlement of securities transactions, to require that they be paid in lieu of cash Hermes shares as originally agreed with the seller.

The Sanctions Committee "in isolation, none of these [measures] violated disclosure rules", but concluded that, collectively, they amounted to an intentional disclosure requirements.

He added: "In consideration of the significant impact of this announcement could be found on the Hermes and LVMH shares, the Sanctions Committee that all aspects of the violation of the rule have established."

LVMH plan to challenge the decision.

If the person LVMH or Hermes publication was not available for comment.