LVMH also holds derivative instruments over some Hermes shares and intends to request their conversion. Once that process is complete, LVMH will hold 17.1% of Hermes' capital.
Mr. Arnault used equity swaps to stealthily build uphis initial stake in Hermès over the past several years, a move that caused theAMF to open an investigation last month into LVMH's move.
LVMH, which said it doesn't intend to launch a tender offer, take control of the company or seek board representation, climbed 4.2 percent to 118.05 euros.