French regulators will probe whether luxury giant LVMH breached securities laws last month when it scooped up more than 17 percent of smaller rival Hermes.

Executives at high-priced handbag maker Hermes have complained they were surprised when LVMH suddenly announced Oct. 23 it had made a $2 billion investment in their label, which is famous for its Birkin bags, silk neckties and printed scarves.

Yesterday, French financial regulator Jean-Pierre Jouyet told a local radio station that “normally you have to make declarations when you pass thresholds of 5 percent, 10 percent,” and added that “France remains the Wild West in terms of corporate takeovers.”

LVMH, whose brands include Louis Vuitton, Fendi, Givenchy and Marc Jacobs, responded in a statement it “welcomes the inquiry,” adding that its moves were made “in full respect of current regulations.”

Paris-based LVMH revealed in securities filings last month that it used complex derivatives to buy its Hermes position in a series of transactions that date back to nearly two years ago.

If current laws don’t require that the use of such sophisticated financial instruments be publicly disclosed, then that needs to change, according to the regulator Jouyet.

Sources say that if Arnault aims to acquire Hermes, he’ll have to charm the descendants of the 173-year-old accessories firm, who own about three-quarters of the company’s shares. That’s a process that would likely take years.