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Thread started: 1 minute ago Un-Watch Adam asked on Tuesday why Hermes handbags was spending heavily to buy back shares once the stock was reaching new highs nearly every week. The shareholder group also questioned if the move was in the interest of most shareholders.

 

Since June, Hermes birkin handbags, best known for its silk scarves and high-end leather bags, has spent 114.5 million euros, or 14 percent of its end-year cash reserves, on share buybacks.Hermes blamed LVMH, which already owns 21.4 percent of the company, for drying up the market by continuing to develop its stake, a process it unveiled last autumn.

 

Hermes's free float is estimated by analysts to be now less than 5 percent.Hermes shares on Wednesday fell 3.4 percent, as the French CAC 40 index of blue chips .FCHI lost 2.1 percent in a world-wide sell-off.

 

Hermes shares have soared 50 percent this year, Hermes Birkin bag 40 Black Epsom leather Silver hardware reaching a higher of 247.95 euros on Monday, in a falling market, getting close to the 250 euros price limit the company set itself in the buyback program.