Hermes rejected on Wednesday “an attack” on its capital by luxury goods giant LVMH, sounding the start of what could become a bitter battle for control of one of France’s most iconic brands.

The head of LVMH, Bernard Arnault announced he had bought 17 percent of his rival Hermes, insisting that this does not herald a hostile takeover but that he simply wanted to become a “friendly” long-term shareholder.

“If you want to be friendly, Mr Arnault, you should withdraw,” retorted Hermes executives Bertrand Puech and Patrick Thomas.

Hermes is exiting a luxury yacht joint venture with shipbuilder Wally, saying it is not experienced enough to complete the project according to Reuters.

The two partners had unveiled a full-sized model of their mega yacht, “WHY”, in Monte Carlo in September.

“We are currently in the phase of carrying out the project, which is technically complex and which requires on-the-spot decisions.”

Hermes believes turbulence could hit the global luxury goods industry for the next two years and has put some expansion plans on hold, the French fashion and leather goods group said on Monday.

Watches and jewelry will take at least two years to recover from the current luxury spending downturn but fashion sales could pick up faster, Hermes Chief Executive Patrick Thomas told the Reuters Global Luxury Summit in Paris.

“In my opinion, turbulence will last rather long, maybe two years,” Thomas said.

The world’s second-largest luxury goods group in terms of market value behind LVMH said it had postponed the opening of two shops in China and two leather goods plants in France.