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Reuters
Published
Apr 1, 2011
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Hermes in talks to sell 45 pct Gaultier stake

By
Reuters
Published
Apr 1, 2011

April 1 - Hermes, the French luxury group battling to remain independent, said on Friday it had begun talks to sell its 45 percent stake in designer brand Jean-Paul Gaultier as consolidation returns to the sector.

Jean-Paul Gaultier, Hermès
Jean-Paul Gaultier's A/W 2011 pret-a porter collection

Hermes, which has been trying to fend off stake-building from larger French rival LVMH, has received expressions of interest in Gaultier from several potential buyers, the group said in a statement.

French newspaper Les Echos had earlier reported interest from unidentified foreign buyers in the Gaultier brand.

Hermes shares were up 0.4 percent at 155.30 euros in morning trading.

Consolidation has returned to the luxury sector after the industry bounced back from the 2009 slump much faster than analysts expected.

LVMH, controlled by billionaire Bernard Arnault, earlier this year bought Italian peer Bulgari after building up a 20.2 percent stake in Hermes.

Positive investor sentiment is also coaxing unlisted groups to consider floating on the stock market. Italy's Prada has applied for a Hong Kong IPO which could value the firm at around 8 billion euros ($11.4 billion) and allow it to draw Asian investors.

(Reporting by Lionel Laurent; Editing by Christian Plumb)

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