Yesterday the word came to an end to the long dispute between two competing fashion giants, Lvmh and Hermes. The former, over six times the size of its rival, has accepted the decision of the Paris arbitration and will distribute to its shareholders the 23,2% held in the latter, worth around 6 billion. The agreement reached was appreciated by the Paris Stock Exchange which yesterday rewarded Lvmh and Christian Dior (among the main shareholders of Bernard Arnault's group) for having closed five different trials in this way.
One of the most surprising effects of the conclusion of the four-year dispute between Lvmh and Hermes is the fact that in this way the shareholders of the largest group receive a sort of extraordinary dividend, equal to about four times the coupon of the last few years. In fact, one Hermes share will be assigned for every 21 shares held in Lvmh, whose main "shareholders" are the Arnault family (46,5%) and Christian Dior, with 1,4% in the hands of the Bulgari family, while Tod's holds a smaller share.
