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LVMH reaps €2bn on Hermès

LVMH, the luxury goods house controlled by Bernard Arnault, has reaped a paper profit of around €2bn ($2.8bn) from a raid to build a 17 per cent stake in Hermès International.

Shares in Hermès rose on Monday by as much as 17 per cent on disclosure of the LVMH interest in the maker of silk scarves and Birkin handbags.

The stakebuilding appeared to have surprised the stock market, the management of Hermès and key members of the families that control the group.

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