Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Fashion`s next takeover?: Louis Vuitton is the owner of near 20% of Hermes.

First row for Louis Vuitton in Hermes catwalk SPRING-2011

Shares in luxury goods makers Hermes (HRMS.PA) and LVMH (LVMH.PA) rose sharply on Monday after LVMH revealed it had built up a 17.1 percent holding in its smaller rival and said it was not planning a takeover.

The holding, announced on Saturday, raises questions about LVMH’s strategy in buying a minority stake in the family-controlled maker of printed silk scarves and how it managed to acquire the holding at a price significantly below the market.

Some analysts suggested it was possible that LVMH, which owns leather goods maker Louis Vuitton, had built up its position via options.

Hermes shares, which rose nearly as much…READ MORE HERE