The watchdog of the Paris stock exchange has ruled in favor of a request by the board of Hermès to set up a holding company owning more than 50 percent of its shares without launching a tender offer for the remaining shares. It justified the decision by noting that members of the Hermès family have consistently participated in the company's decisions over the last years. However, LVMH and minority investors are almost certain to request an appeal against the decision ? a process that could take up to six months. More than 60 members of the Hermès family own 73.1 percent of the company. Out of them, only 52 who own 62.85 percent of the shares asked to form the new holding company, and 33 who have 42 percent of the shares are active within the family company. Their new holding company would have rights of first refusal on a large number of their shares. The idea is to prevent LVMH from further increasing its stake of 20.2 percent in Hermès. The share value of Hermès is now around €155, way below the peak of €207 reached last November after LVMH disclosed that it had bought 17.1 percent of Hermès.