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LVMH and Tiffany are initiating a dialogue regarding a price reduction for the acquisition of the American jeweler.
According to several sources close to the LVMH/Tiffany affair, the French luxury goods giant LVMH could obtain a discount on the acquisition price of the jeweler Tiffany. This discussion tends to reduce the acquisition price, which was initially $135 to $134 per share, to a range of $131 to $134.
The LVMH and Tiffany groups have been at odds since the announcement by Bernard Arnault on September 9, stating that he could not “as is” complete his acquisition project, blaming the jeweler for management errors and citing insufficient commercial performance following the economic crisis related to COVID-19.
These disagreements led to legal proceedings by both parties. The trial on the dispute between the two companies is scheduled to last four days, starting on January 5, and will take place in the state of Delaware. Tiffany announced Monday that it has received the green light from the European Commission for the acquisition.
The two groups refused to comment on this new information, which however led to a rise of nearly 5% in the share price of the American jeweler on the New York Stock Exchange.
If this marriage were to take place, it would allow the luxury goods giant LVMH to enrich its least profitable division, watches and jewelry. This division, which already includes the Bulgari and Tag Heuer brands, could expand and strengthen its presence in the United States.
Read also > THE EUROPEAN COMMISSION VALIDATES THE ACQUISITION OF TIFFANY BY LVMH
Fearured photo : © Tiffany[/vc_column_text][/vc_column][/vc_row]
