LVMH stake in Hermes reaches 22.3 pct

PARIS - The world's biggest luxury group, LVMH (LVMH.PA), has increased its stake in leather bag maker Hermes (HRMS.PA) to 22.3 percent and now has 16 percent of voting rights, according to a statement from France's AMF stock market regulator.

Hermes shop on Rodeo Drive, Photo: Corbis Images

LVMH, which previously held 21.4 percent of its smaller rival, plans to continue buying Hermes shares "according to circumstances and the market situation," LVMH said in a filing to the AMF.

The group, led by billionaire businessman Bernard Arnault said it did not plan to take control of Hermes or make a takeover offer for the company, according to the AMF.

LVMH has been gradually increasing its holding in Hermes since it was revealed 14 months ago that it had built up a surprise 17 percent stake.

Hermes family shareholders have responded to the stakebuilding by creating a majority family holding that will shield it from the threat of a takeover.

(Reporting by Pascale Denis and James Regan; Editing by David Cowell)