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A technical expert inspects the distillery of the Hennessy factory in Cognac, southwestern France, January 22, 2009. Hennessy is the biggest maker of Cognac and a member of LVMH (Moet Hennessy-Louis Vuitton) group.
A technical expert inspects the distillery of the Hennessy factory in Cognac, southwestern France, January 22, 2009. Hennessy is the biggest maker of Cognac and a member of LVMH (Moet Hennessy-Louis Vuitton) group.
(Regis Duvignau/Reuters)

FINANCIAL TIMES

Hermès and LVMH tiff isn’t going anywhere

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

The handbag wars are growing nastier by the day. The story so far: French luxury goods group LVMH has built up a 22 per cent stake in rival Hermès, which is unhappy with the stakebuilding and has complained about the way in which most of it was disclosed in 2010. Cue a potential €10-million ($13.5-million) fine for LVMH from the French regulator and lawsuits and rancour on both sides.