Court Documents Reveal LVMH’s Secret Hermès Share Pact
Court Documents Reveal LVMH’s Secret Hermès Share Pact
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Key Points
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LVMH stated in a June court filing: “The group never contemplated acquiring Nicolas Puech’s stake, let alone against his will.” The newly reviewed agreement directly challenges that categorical denial.
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In earlier Swiss proceedings, LVMH said Freymond had close ties to several Hermès shareholders who might sell their shares. A Swiss lawyer cited by Reuters alleged that transactions used Puech’s accounts as an intermediary to conceal LVMH’s identity as the ultimate buyer.
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LVMH first publicly disclosed a 17% stake in Hermès in October 2010, prompting Hermès to characterize the move as a hostile takeover attempt and intensifying the long-running rivalry between the two luxury groups.
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LVMH acknowledges working with Freymond to acquire Hermès shares but says Puech’s stake may have been acquired unintentionally, while the precise fate of the shares and any payment connected to them remains unknown.
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The separate French criminal investigation includes Swiss lawyer Alexandre Montavon, who advised LVMH during the construction of its hidden Hermès stake; no charges have been filed against him, and his lawyer has denied wrongdoing.
LVMH signed a secret 2002 agreement to buy millions of Hermès shares from founding-family heir Nicolas Puech, according to newly disclosed court documents that directly contradict the luxury giant's recent claim that it never sought to acquire his stake. CNBC TV18 reports that the deal with Puech's wealth manager, Eric Freymond, conflicts with LVMH's June court filing asserting the company never contemplated acquiring Puech's holdings. LVMH says the agreement was never executed because Freymond's authority could not be verified and the document was later destroyed.
Puech, who discovered in 2022 that his 6% stake—now worth roughly $10 billion—had vanished, is suing LVMH for €14 billion in France. Business of Fashion reports that LVMH and the Arnault family's holding company paid Freymond's firm at least $20 million in commissions and advisory fees between 2001 and 2009 while he helped LVMH build a covert Hermès position that eventually reached 23%. French prosecutors are investigating the alleged misappropriation, while LVMH denies deliberately taking Puech's shares.
The Hidden 2002 Deal That LVMH Tried to Hide
Court documents show LVMH signed an agreement in November 2002 with Eric Freymond to purchase millions of Hermès shares held by Puech and other family members. IJR confirms that LVMH and the Arnault family's holding company paid Freymond's firm substantial commissions during the period when LVMH was quietly building its stake. The agreement surfaces just after LVMH stated under oath that it never contemplated acquiring Puech's position—a categorical denial that the newly disclosed pact directly undermines.
LVMH claims the 2002 agreement was never executed because Freymond's authority to act on behalf of Puech could not be verified. The company also says the document was later destroyed. Yet the fact that such an agreement existed and was signed contradicts LVMH's June court assertion that acquiring Puech's stake was never even contemplated.
Puech Discovers His $10 Billion Fortune Has Vanished
In 2022, Nicolas Puech learned that his 6% Hermès stake—worth roughly $10 billion—had disappeared from his control. The Deep Dive reports that Puech, one of Hermès' founding-family heirs, is now suing LVMH, Bernard Arnault, and other parties for €14 billion in a French civil lawsuit. Puech alleges he was defrauded of his shares through schemes involving his wealth manager and intermediaries.
French prosecutors are conducting a separate criminal investigation into the alleged misappropriation of Puech's stake. No charges have been filed yet. LVMH denies deliberately taking Puech's shares and says the precise fate of his stake and any payments connected to it remain unknown.
LVMH's Secret Hermès Buying Spree Cost $20 Million
Between 2001 and 2009, LVMH and the Arnault family's holding company paid Freymond's firm at least $20 million in commissions, management fees, and advisory fees. This money flowed while Freymond helped LVMH covertly acquire Hermès shares that eventually totaled 23% of the company. A Swiss lawyer involved in the transactions allegedly used Puech's accounts as an intermediary to conceal LVMH's identity as the ultimate buyer.
The Moment LVMH's Hidden Position Became Public
LVMH first publicly disclosed a 17% stake in Hermès in October 2010, a move that shocked the luxury world. Business of Fashion reports that Hermès immediately characterized the disclosure as a hostile takeover attempt, intensifying the long-running rivalry between the two luxury houses. The public revelation marked the end of LVMH's decade of secretive share accumulation and set the stage for years of legal battles.
Today, LVMH acknowledges working with Freymond to acquire Hermès shares but maintains that Puech's stake may have been acquired unintentionally. The company claims the exact fate of the shares remains unresolved. Freymond's role and the involvement of Swiss lawyer Alexandre Montavon, who advised LVMH during the hidden stake-building, are now central to both the civil and criminal investigations.
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