Hermes shares hit record on stake-building talk

PARIS (Reuters) - Shares in France's Hermes International (HRMS.PA: Quote, Profile, Research) soared to a record high on Monday, lifted by renewed speculation of stakebuilding in the world-famous maker of silk scarves and Birkin handbags.

Shares in the Paris-based family-controlled firm rose as much as 12.9 percent to 112.70 euros in brisk volume.

The shares were up 9 percent at 108.79 euros by 05:30 a.m. EDT, adding a billion euros to the market value of one of France's most luxurious brands, founded as a family saddle store in 1837.

The company is worth 11.6 billion euros ($18 billion) at latest stock market prices.

"It's the bid rumors that have come back," said a Paris-based fund manager.

Agilis Gestion fund manager Arnaud Scarpaci also said he had heard rumors of investors building up a stake in Hermes.

Officials at Hermes could not be immediately reached for comment on Monday, a public holiday in France even though financial markets were open for trading.

Hermes has been the subject of sporadic speculation about stake-building for months, pushing the underlying value of its shares well above rivals in a sector which is itself showing better resilience than most to the global economic downturn.

French rival LVMH (LVMH.PA: Quote, Profile, Research), the world's largest luxury goods firm, and Belgian financier Albert Frere have both occasionally been mentioned as possible suitors.  Continued...