LVMH will not appeal against its conviction by the AMF: a good point for the French regulator.

LVMH renouncing to appeal against the very complex and courageous decision of the Disciplinary Commission of the AMF is very positive news: it consolidates the case law on compliance with shareholding disclosure thresholds and information on significant economic positions held on listed companies.

This announcement backs ECGS and Proxinvest positions which from the 2010 announcement of its hidden 14% stake in 2010 had suggested that remedy against the methods of this rider and secret shareholder of Hermès International . According to the French newspaper, Le Monde, LVMH (Bernard Arnault), finally decided to abandon his appeal against conviction to a fine of € 8 million in its dispute with Hermes International of which it now holds 23.1%.

Recall that the AMF decision blamed LVMH, on the one hand, for "having issued to the public a false, inaccurate or insincere information on Hermès shares it already held, and on the other hand, not having informed the market preparation of the financial transaction to acquire a stake of more than 10% of the voting rights and 15% of the capital of Hermès."

The AMF has established that, thanks to the use of subsidiaries Hannibal (Luxembourg), Altair Holding (Delaware) and Harmony (Hong-Kong), LVMH had been secretly accumulating a significant capital stake in Hermès International, bypassing all rules to ensure the necessary transparency to the functi

All this, with the active complicity of three French banking groups: Nexgen Capital Limited (Natixis "), Société Générale and Crédit Agricole CA-CIB (formerly Calyon), the latter having, however, shown to LVMH in 2010 his opposition for lack of transparency to the final unwinding in equity.

London, September 4, 2013