) -- Luxury goods group
LVMH Moët Hennessy Louis Vuitton
said Saturday it had taken a 14.2% stake in rival
LVMH plans to convert derivatives it owns into additional shares, boosting that stake to 17.1%.
LVMH said it plans to be a long-term shareholder of Hermes and has no intention of launching a tender offer, taking control of Hermes or seeking representation on its board.
In a news release, LVMH said it "fully supports" the strategy implemented by the Hermes founding family and management team.
> > Bull or Bear? Vote in Our Poll
LVMH owns luggage and bag maker Louis Vuitton, champagne house Moet et Chandon, Christian Dior perfumes and watches, and the Fendi and Givenchy clothing lines.
Hermes makes luxury leather goods and clothes including the Kelly bag.
A recent report says
the economic recovery.
This article was written by a staff member of TheStreet.