Hermes (HRMS.PA) has defended itself against any possible take-over by rival LVMH by pooling in their shares in a single holding company, France's stock market regulator (AMF) reported on Friday.

The AMF granted permission to allow a majority of the Hermes family shareholders to group together to form a single holding company with over 50 percent of the company's equity. This acted as a defense mode against any possible takeover by the LVMH French holding company.

Earlier, in December 2010, LVMH raised its stake in Hermes to over 20 percent using on and off market transactions. This led to speculations in the market over a possible take-over strategy by LVMH, although the company reiterated otherwise.

LVMH's surreptitious purchase of Hermes shares since 2008 led the AMF to investigate into the matter.

Although decision about the Hermes holding company has been announced, there is no clear picture about the exact number of family shareholders to be involved.

AMF, on the other hand, stated that it would soon publish its full decision along with explanations.