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Hermes sells stake in Leica


andy_piper2

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Looks like the camera guys won out over the fashioneers....

 

Leica press release

 

 

Herm賠International SCA, Paris, today informed Leica Camera AG, Solms (ISIN

DE000A0EPU98), that it has sold to ACM Projektentwicklung GmbH its share

interest in Leica Camera AG, as well as half of its holdings of the convertible

bonds issued by Leica Camera AG in 2004. In the year 2004, Leica Camera AG had

issued convertible bonds in an amount of � 15.0 million, maturing on March 3,

2014; to the knowledge of Leica Camera AG, until recently Herm賠International

SCA held approximately 96.5 % of the abovementioned convertible bonds.

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I know they don`t sell ladies overpriced handbags. Maybe they are in the camera bag business.

 

Let`s hope they they don`t intend to close it and use it as business loss. All kinds of strange thing go on in the world of finance. I had a workmate who was into realeastate/property mgt partnerships and let me tell you, I was shocked at how money is made. It is not earned except by suckers.

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Thye've owned the 'other half' of Leica for several years (actually about 35% each, with various small investors owning the rest). Family owned (so no investors breathing down their necks). I think they're the same people that bought the Leica projector business separately several years ago.

 

Pretty sure I saw a post from one of the family members over at the RFF reaffirming their commitment to quality product rather than quick cash - (although I'm sure they want to make a buck sooner or later)

 

based in Salzburg, Austria.

 

been buying buying up bits of Leica for a while:

 

http://www.photo.net/bboard/q-and-a-fetch-msg?msg_id=00FJQp

 

If Hermes sold the stake they bought for Eu 30 million 5-6 years ago for Eu 15 million today (and are still holding bonds) they took a bath....

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But after such a bath, Hermes will have plenty of <a href=http://www.bluefly.com/pages/browse/list.jsp?referer=NSA&cm_mmc=NSA-_-na-_-na-_-homepage&FOLDER%3c%3efolder_id=3755011&N=3755011+4294965983&nsa=1> designer towels around</a> to dry off. <p>

 

The pairing always struck me as a mismatch, incidentally.

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Leica's old CEO was from the premium furniture business and came to Leica at a time when film ruled and photo tech was stagnant with everything invented already. Leica's niche then became fashionable cameras etc. But with digital, Leica had to become a technology business again, not a lifestyle business, so clearly Hermes couldn't add value there and quit. Have to go now, in a hurry.
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I remember back in 2000 when people here were practically jumping up and down with glee that a company "with deep pockets" and an understanding of "luxury goods" would provide funding and provoke management stability and growth for Leica. I remember people in 2004 declaring that Hermes always did "a great job" with every company they've ever taken over and they must know what they're doing with Leica too. I remember people crowing about Hermes' impressive service and product quality, and falling over themselves defending the absurd Leica Hermes Edition. I remember people pooh-poohing Leica's poor management decisions, poor sales and low profits (or worse) by noting how badly Ferrari did that year (as if that made any difference).

 

I wonder if there isn't a little scent of sour grapes in the noses of those who dismiss a profitable company like Hermes making this business decision -- a pretty smart one, in which the company sells off a company with middling prospects right at a moment of fanfare for the company, before an presumably expected drop. It's called 'selling high.'

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I can't belive that guys who think little of dropping several thousand dollars a film body and the same amount on a lens to attach to it are making snide comments about Hermes prices.

 

FYI, you should stop in one of their stores sometime. You'll be treated to the finest leather goods available, as well as silks. Don't know about their towels, but the shoes, saddles, and ties are among the finest I own/know about.

 

Similarly, are you surprised that WalMart didn't own a position in Leica?

 

Ray Hull

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