Davis Polk advised LVMH Group on a final settlement of all disputes and lawsuits with Hermès filed since 2010 in connection with the acquisition by LVMH of 15% of the share capital of Hermès. According to this agreement, all Hermès shares held by the LVMH Group, which represent more than 23% of the share capital of Hermès and are valued at €6.4 billion, will be distributed to LVMH’s shareholders. Following these distributions, Groupe Arnault, M. Bernard Arnault’s holdings, will hold approximately 8.5% of Hermès, and LVMH will have realized through this operation a capital gain exceeding €3 billion. LVMH has also agreed not to acquire additional Hermès shares for five years.

Davis Polk represented LVMH in connection with this settlement agreement and finalization process and, more generally, has represented LVMH and its corporate officers since 2010 in the multiple disputes existing between LVMH and Hermès before the Commercial Court, Criminal Court and Autorité des Marchés Financiers.

A world leader in high-quality products, LVMH Moët Hennessy – Louis Vuitton possesses a unique portfolio of over 60 prestigious brands. As at the end of 2013, Hermès employed 11,037 people world-wide and had 315 exclusive stores, 203 of which were operated directly.

The Davis Polk team includes partner Georges Terrier and associates Jérôme Sibille and Yosra Jarraya. All members of the Davis Polk team are based in the Paris office.