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LVMH Seals Tiffany Takeover at Lower Price
Oct 29, 2020 6:16 AM
By Rapaport News
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RAPAPORT... Tiffany & Co. and LVMH have settled their public dispute, agreeing to a reduced price for their takeover deal after the French luxury group walked away last month.
LVMH will pay $131.50 per share for Tiffany, rather than the $135 to which the companies agreed in late 2019, they announced in a joint statement Thursday. That shaves around $420 million off the original deal’s value of $16.2 billion.
“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,” commented Tiffany chairman Roger Farah.
The two companies announced the initial acquisition agreement in November of last year, but the relationship turned sour after the coronavirus pandemic damaged luxury demand and reduced Tiffany’s appeal as a takeover target. LVMH pulled out of the deal in September and later claimed the US jeweler had mismanaged the crisis, leading to Tiffany filing a lawsuit in Delaware.
The parties have now settled the litigation, however, and LVMH has received all the regulatory approvals it needs for the deal to go ahead, the Thursday statement affirmed. Other key terms of the agreement remain unchanged.
“The merger is expected to close in early 2021, subject to Tiffany shareholder approval and customary closing conditions,” the companies said.
Image: Tiffany engagement rings. (Tiffany & Co.)
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Tags:
Coronavirus, COVID-19, LVMH, Rapaport News, Tiffany, Tiffany & CO.
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