French authorities reopen probe into LVMH's stakebuilding in Hermès
The Paris Prosecutor's Office has announced that Swiss lawyer Alexandre Montavon has been placed under formal investigation as part of the inquiry into LVMH's stakebuilding in Hermès, Reuters reports. The operation triggered a high-profile corporate and legal battle between the two luxury giants over a decade ago. In late morning trading, LVMH shares were up 1.62%, while Hermès gained 1.74%.
Placed under investigation for complicity in breach of trust, the Swiss lawyer is suspected of participating in the misappropriation of Hermès shares belonging to Nicolas Puech, an heir to the group's founding family, for the benefit of LVMH.
According to the prosecutor's office, investigators are specifically looking into his role as an advisor and director of the offshore company Dilico. The French financial markets regulator (AMF) had previously identified this entity as a vehicle used to transfer Hermès securities to institutions linked to Bernard Arnault's group.
This judicial development brings renewed scrutiny to the circumstances surrounding LVMH's entry into the capital of its rival. Revealed in 2010, the stakebuilding sparked years of market and legal warfare between the two groups and led the AMF to fine LVMH 8 million euros in 2013 for failing to meet disclosure requirements.
For his part, 83-year-old Nicolas Puech claims he was unknowingly deprived of a stake now valued at over 10 billion euros. In a complaint filed in Paris in late 2023, he accused his former wealth manager, Eric Freymond, who passed away in 2025, along with potential accomplices, of misappropriating his assets.
'As stated in December, LVMH and its shareholder forcefully reaffirm that they have at no time misappropriated shares of Hermès International, in any manner whatsoever or without the knowledge of any party.'
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (46.7%): brands such as Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, etc.;
- watches and jewels (13%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (10.1%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, Givenchy brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (6.6%): champagnes (Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining net sales (23.6%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2025, products are marketed via a network of 6,283 outlets located throughout the world.
Net sales are distributed geographically as follows: France (8.3%), Europe (18%), Japan (7.9%), Asia (26.5%), the United States (25.6%) and other (13.7%).
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