LVMH's On-Off Deal to Buy Tiffany is On Again

By John Jeffay / October 29, 2020 / www.idexonline.com / Article Link

(IDEX Online) -Tiffany and LVMH have settled their highly-publicized differences over a $16.2bn takeover.The French luxury conglomerate LVMH walked away from the deal in September, citing a tit-for-tat war over US trade tariffs and a poor performance by Tiffany & Co during the pandemic.But after bitter legal threats from both sides, LVMH has now negotiated a modest three per cent ($425m) discount and the on-off deal could now be completed in January 2021.Some industry experts had suggested that the LVMH withdrawal was a bargaining ploy to acquire the New York-based jeweler at a better price. The agreed price per share was lowered from $135 to $131.50 and both sides agreed to drop their lawsuits.Roger N. Farah, chairman of the board of directors of Tiffany, said: "We are very pleased to have reached an agreement with LVMH at an attractive price and to now be able to proceed with the merger. The board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing."Bernard Arnault, president and CEO of LVMH, said: "This balanced agreement with Tiffany's board allows LVMH to work on the Tiffany acquisition with confidence and resume discussions with Tiffany's management on the integration details. "We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees during this exciting next chapter."

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