FRENCH securities regulators will decide on Friday whether or notLVMH's stake in Hermès was acquired unfairly. The inquiry has been two years in the making and is expected to allege that the luxury conglomerate planned its accrual of Hermès shares more than 10 years ago in order to cover up its involvement in the family-owned company.
LVMH boss Bernard Arnault could face a fine of up to €10 million (£8.56 million), but - according to French law - he will not be forced to give up his holdings in the fashion house. For a man worth $29 billion (£19 billion), the penalty will be a relatively small sum to pay. Friday's public hearing will see both sides share their accounts of the case, while the decision will be published within the next few weeks, theInternational Herald Tribune reports.
LVMH revealed that it owned a 14.2 per cent stake in the fashion label in October 2010, a figure that has since risen to 22.3 per cent. The Hermés family described the move as an "attack", while Arnault denied any wrong-doing - filing a lawsuit against the brand for "slander, blackmail and unfair competition".
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