Rival LVMH‘s increased stake ownership has prompted HERMES to spend 114.5 million euros, or 14% of its end-year cash reserves, on share buybacks. Hermes blamed LVMH, which already owns 21.4 % of the company, for drying up the market by continuing to build up its stake, a process it unveiled last autumn.
"The share buyback is to cover our employee share attribution scheme," a spokeswoman for Hermes said, adding"The continued acquisition of Hermes shares by LVMH forces Hermes to take precautions to be able to honor its commitments to its employees".
Hermes today is worth 25.5 billion euros, or about as much as France’s second largest bank Societe Generale and about twice as much as Carrefour, the world’s second-biggest food retailer.
adapted from Reuters
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