Tiffany & LVMH In Talks To Settle Dispute, Reduce Value Of Deal

Words by Luhar Singh

Tiffany & LVMH In Talks To Settle Dispute, Reduce Value Of Deal
Tiffany & LVMH In Talks To Settle Dispute, Reduce Value Of Deal

Tiffany and Louis Vuitton-owner LVMH are in talks to set their differences aside and reconsider the $16.2 billion merger that was called off last month.

However, the two companies are discussing new terms for the deal under which LVMH would acquire Tiffany & Co. for $130 to $133 per share. According to CNBC, the original terms of the deal would have valued Tiffany’s stock price at $135 per share. 

While discussions surrounding the new deal are still fluid, the merger would save the two companies from legal trouble. 

As Retail Bum reported last month, LVMH pulled out of the deal after Tiffany saw its same-store sales drop by 44 percent. At the time, LVMH said that it needed to reassess the impact of the U.S. tariffs on French goods after receiving a directive from France’s minister of foreign affairs to defer the deal until after January 6 to assess the threat of American tariffs. 

Tiffany sued LVMH in a Delaware court to enforce the deal and blamed LVMH for deliberately stalling the deal. This was followed by a counter-lawsuit from LVMH, blaming Tiffany for mismanaging its business during the pandemic. 

After news of the potential new deal broke, Tiffany’s stock jumped by nearly 5 percent on Tuesday, reaching $128.75. The company currently has a market cap of $15.2 billion.

MUST READS
No more posts to show, explore other topics: