Hermes Finally Ditches LVMH but Arnault's Stake Leaves Door Open

After a long legal conflict, France's Hermes is finally parting ways with LVMH Group. After LVMH CEO Bernard Arnault bought up shares of Hermes over the past couple of years using derivatives to sidestep France's disclosure rules, the companies have agreed that LVMH will distribute all of its Hermes shares to its shareholders. However, the agreement will give Arnault an 8.5% stake in Hermes as a result of the distribution. With this in mind, Paul Whitfield, correspondent for The Deal, says this might not be the end of the road between the two companies. Whitfield says Arnault's significant stake leaves the door open if Hermes changes its mind about working with LVMH in the future.