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The outcome of the dialogue between LVMH and Tiffany is favorable to the French luxury giant, which obtains the takeover of the New York jeweler for a sum lowered to $ 15.7 billion , or the equivalent of 13.3 billion €. LVMH therefore benefits from a 2.59% discount after two months of relentless negotiations.
In a first agreement signed on November 24, 2019, it was agreed between the two firms that the cost of a share would be $ 135. On October 29, 2020, LVMH obtained approval from Tiffany’s board of directors to change the terms set almost a year ago, lowering the cost of a share to $ 131.50, or 112 €. This change in the terms of the merger agreement is expected to be approved by Tiffany’s general meeting of shareholders on February 4, 2020.
This change in contractual clauses between the two giants will not prevent the payment of the quarterly dividend amounting to $ 0.58 per share. Indeed, “The board of directors considered that it was in the best interests of all stakeholders to complete this transaction with certainty,” said Roger Farah, chairman of the board of Tiffany. Although the latter was attacked in spring 2020 by LVMH, this new compromise puts “an end to all legal proceedings” until then incurred by the jeweler. With Tiffany’s stock steadily losing value due to the current pandemic, LVMH was already looking to lower the cost of the upcoming transaction. As a result, Reuters reported on June 4 that the French leader was trying to “identify ways to convince Tiffany to lower the agreed price for the operation.”
However, on October 29, 2020, it seems that Tiffany was convinced. While Bernard Arnault planned to acquire the New York-based firm for $ 16.2 billion, it is therefore for $ 425 million less that the historic jeweler will join the ranks of LVMH.
Read also > DISCUSSION AUTOUR D’UNE RÉDUCTION DU PRIX DE RACHAT
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The outcome of the dialogue between LVMH and Tiffany is favorable to the French luxury giant, which obtains the takeover of the New York jeweler for a sum lowered to $ 15.7 billion , or the equivalent of 13.3 billion €. LVMH therefore benefits from a 2.59% discount after two months of relentless negotiations.
In a first agreement signed on November 24, 2019, it was agreed between the two firms that the cost of a share would be $ 135. On October 29, 2020, LVMH obtained approval from Tiffany’s board of directors to change the terms set almost a year ago, lowering the cost of a share to $ 131.50, or 112 €. This change in the terms of the merger agreement is expected to be approved by Tiffany’s general meeting of shareholders on February 4, 2020.
This change in contractual clauses between the two giants will not prevent the payment of the quarterly dividend amounting to $ 0.58 per share. Indeed, “The board of directors considered that it was in the best interests of all stakeholders to complete this transaction with certainty,” said Roger Farah, chairman of the board of Tiffany. Although the latter was attacked in spring 2020 by LVMH, this new compromise puts “an end to all legal proceedings” until then incurred by the jeweler. With Tiffany’s stock steadily losing value due to the current pandemic, LVMH was already looking to lower the cost of the upcoming transaction. As a result, Reuters reported on June 4 that the French leader was trying to “identify ways to convince Tiffany to lower the agreed price for the operation.”
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The outcome of the dialogue between LVMH and Tiffany is favorable to the French luxury giant, which obtains the takeover of the New York jeweler for a sum lowered to $ 15.7 billion , or the equivalent of 13.3 billion €. LVMH therefore benefits from a 2.59% discount after two months of relentless negotiations.
In a first agreement signed on November 24, 2019, it was agreed between the two firms that the cost of a share would be $ 135. On October 29, 2020, LVMH obtained approval from Tiffany’s board of directors to change the terms set almost a year ago, lowering the cost of a share to $ 131.50, or 112 €. This change in the terms of the merger agreement is expected to be approved by Tiffany’s general meeting of shareholders on February 4, 2020.
This change in contractual clauses between the two giants will not prevent the payment of the quarterly dividend amounting to $ 0.58 per share. Indeed, “The board of directors considered that it was in the best interests of all stakeholders to complete this transaction with certainty,” said Roger Farah, chairman of the board of Tiffany. Although the latter was attacked in spring 2020 by LVMH, this new compromise puts “an end to all legal proceedings” until then incurred by the jeweler. With Tiffany’s stock steadily losing value due to the current pandemic, LVMH was already looking to lower the cost of the upcoming transaction. As a result, Reuters reported on June 4 that the French leader was trying to “identify ways to convince Tiffany to lower the agreed price for the operation.”
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