Hermes Bid Rumors

Posted by: Charles DuBow on May 12

Could Hermes (HRMS) soon be selling more than Birkin bags and its trademark silk ties and scarves? Shares of the Paris-based luxury goods maker rose to record highs on Monday on renewed rumors of stake-building, according to a report from Reuters.

Shares in the Paris-based family-controlled firm rose as much as 12.9 percent to 112.70 euros in brisk volume.

The shares were up 9 percent at 108.79 euros by 05:30 a.m. EDT, adding a billion euros to the market value of one of France’s most luxurious brands, founded as a family saddle store in 1837.

The company, which is publicly traded but is tightly controlled by the Hermes family, which owns 72% of the stock, has been the subject of take-over speculation since it appointed Patrick Thomas as the first non-family member to be CEO in 2006. Because it was a holiday in France, there was no comment from the family.

Possible acquirers would be French luxury conglomerate LVMH Moet-Hennessy Louis Vuitton (LVMH) or Belgian billionaire Albert Frere, CEO of Groupe Bruxelles Lambert.

Last week Hermes announced strong first-quarter revenues, with global sales up 13.4% to $621.7 million at average exchange rates, with robust performances across all key product categories and regions.