LVMH denies designs on Hermès

LVMH has hit back in the battle of the Birkin bags, denying claims by Hermès that it is trying to destabilise its rival fashion house.

Pierre Godé, vice-chairman of the luxury goods conglomerate, insisted LVMH, with a 20.2% stake in Hermès, is an "entirely peaceful" shareholder, invested "for the long term".

Speaking at Hermès' annual meeting, Godé said: "LVMH has never sought to destabilise the Hermès family nor the company's staff or suppliers. I challenge those who assert otherwise to produce a shred of evidence. For the avoidance of doubt, there is none. LVMH will be a healthily active shareholder, [but] will not be activist." Godé was responding to accusations by Hermès, famed for its silk scarves and handbags, that LVMH had made "incessant attacks" on the company.

"LVMH says its approach to us is friendly," Hermès president Bertrand Puech said in an interview with Le Figaro yesterday. "With friends like these, who needs enemies?" Puech also called on LVMH to halve its stake to increase liquidity in Hermès shares.

To fend off what it sees as hostile advances from LVMH, Hermès has set up a holding company controlling more than half of its shares. They have been locked in a war of words since October when LVMH revealed it had acquired a stake.