Hermes store in New York

Jan 4 - French regulators will consider on Thursday whether Hermes family shareholders can pool holdings as a takeover defence without having to make a bid of their own, according to a person familiar with the matter.

Hermes is trying to fend off a takeover from rival luxury company and 20 percent shareholder LVMH.

The bag maker decided earlier this month to create a holding that would allow family shareholders to control more than 50 percent of equity to defend itself against hostile takeover.

Legally, shareholders, once united through a pact or a holding, need to launch a buyout of other shareholders when their holding climbs above 33 percent.

However, under certain circumstances, they may obtain a waiver from the AMF.

The sixteen-member committee of stock market regulator the AMF will debate the issue on Thursday, but may not make a decision immediately, the person said. If it requests more information, the verdict might not come for another 15 days.

"The issue will go before the committee on Thursday," said the person. The AMF declined to comment on Tuesday.

LVMH now owns 20.21 percent of Hermes, after having built up a 17.1 percent stake starting in 2008, mainly via derivatives.

The founding family of Hermes was said to have been surprised and displeased about the arrival of LVMH and tried unsuccessfully to convince Bernard Arnault, LVMH's controlling shareholder and chief executive, to withdraw from its capital.

Hermes family shareholders, which number around 60, together own about 73 percent of the company.

The French association of minority shareholders has already said it opposed Hermes getting a buyout waiver from the AMF.

LVMH's move on Hermes via derivatives known as equity swaps, together with Hermes's defence measures, have exposed loopholes and weakness in French stock market regulation.

Equity swaps had enabled LVMH to avoid having to declare its stake-building in Hermes.

Separately, a source close to Albert Frere said the Belgian billionaire does not hold any shares in Hermes. The source was responding to newspaper report that suggested Frere held a stake and was acting as a "friend" of LVMH.

(Reporting by Pascale Denis, writing by Leila Abboud; Editing by Hans Peters and Andrew Callus)