Truth Will Out For Hermes and LVMH
French regulator values decide Friday whether the LVMH stake in Hermès acquired injustice. The survey was two years in the making and is expected to argue that the luxury group's accounting stocks Hermes planned, there are more than 10 years to cover its share of the family business.
LVMH boss Bernard Arnault could face a fine of up to € 10 million (£ 8.56 million), but - according to French law - it will not be forced to their involvement in the fashion house. For a man worth $ 29000000000 (£ 19 billion), the penalty is a relatively small amount to pay. Public hearing on Friday to see the two parties share their accounts of the case, while the decision will be published in the coming weeks, reports the International Herald Tribune.
LVMH revealed that it held a stake of 14.2 percent in the fashion label in October 2010, a number that has since increased to 22.3 per cent. The Hermes family has described this as an "attack", while Arnault has denied any wrongdoing - a complaint against the brand "slander, extortion and unfair competition."