LVMH Drops call Fine policeman during Exchange Hermes Stake

Announced French luxury giant LVMH Moet Hennessy Louis Vuitton SA ( Hermes Kelly Handbags ) Tuesday his decision not imposed the end of eight million euro market surveillance activities of France appeal for non-compliance , if he has a significant stake in Hermes International SCA ( RMS. FR) . "This decision reflects the commitment of LVMH ensure the smooth management of the investment as possible to ensure in Hermes ," the company said in a statement , and repeated his rejection of the decision of the body. The decision to abandon the procedure is about two months after the AMF , the AMF , or hit a record fine for the largest companies in the world luxury goods market for deceptive by not disclosing information of its stake in Hermes earlier . The decision of the regulatory authority to investigate the actions of the LVMH back to 2010 after the luxury giant Hermes stunned by the revelation that they receive through direct purchase a 17.1 % stake in its smaller rival actions and complex derivatives as equity swaps , money market instruments , investors bet on the price movements of the stock without owning the shares allow known . The Disciplinary Committee of the AMF said in late June that the fine reflected the "seriousness of consecutive was against the requirements of disclosure to cover every step of the LVMH stake in Hermes . " hermes men bag In its statement on Tuesday, LVMH was little evidence of the reasons for his U-turn - to call the company first expressed plans - say it would be " justified call. " However, the interests of the shareholders of LVMH , the defense of these principles ," he said. The company reiterated that the AMF said LVMH had " never violated the rules on thresholds or engaging in insider trading or market manipulation operations " Harms are subject to criminal penalties . LVMH first built a position in Hermes from 2002 through the direct acquisition of shares and equity swaps over a period of several years and decided to transactions with real actions rather than cash. LVMH eventually acquired 12% of Hermes through equity swaps . Due to the fragmentation problem LVMH for a time , a legal duty to disclose , which is often necessary when the investors avoided at least 5% of a company . , In accordance with the rules of the French market Founding family of Hermes immediately closed ranks and formed a holding company that controls respond to take majority stake in Hermes, any attempt to control. Hermes then filed a criminal complaint against LVMH earlier this year , because of insider trading, their participation was to acquire . The allegations led LVMH, file a complaint against the company for slander and false accusations. LVMH continues to buy shares on the market since 2010 and now holds a 23.1% stake in Hermes, published after his interim report. hermes bag