Takeover talk as Vuitton snaps up 17% of rival Hermès
LVMH - which owns Scotch whisky brands including Ardeg, Glen Moray and Glenmorangie - splashed out €1.5 billion (1.3bn) on a 14.2 per cent stake in the firm famous for its scarves and "Birkin" handbags. It also has derivative options that could take its share up to 17 per cent.
The block of 15 million shares is believed to have been bought at a 50 per cent discount to Herms' €176 closing price on Friday night. The seller's identity was not revealed over the weekend but is expected to emerge in the AMF filing, due on Wednesday.
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Hide AdLVMH - led by Bernard Arnault, France's richest man - denied it had bought the shares as part of a takeover bid for Herms, a move long predicted in the world of luxury goods. Commentators have speculated that, in order to finance a takeover, LVMH could sell its drinks business to Diageo, which owns Johnnie Walker and Bell's.