LVMH, Tiffany resume talks to try to save merger: source
Oct 28, 2020 - 07:16 AM
WASHINGTON — LVMH and Tiffany have revived talks to try to resuscitate their merger, which has been on shaky ground since late summer, a person close to the talks said Tuesday.
Among the options, the companies are discussing possibly lowering the price, so LVMH would pay between $130 to $133 a share for Tiffany, instead of $135 under a $16.2 billion deal, the source told AFP.
The two companies declined comment.
The parent to luxury brands such as Louis Vuitton, Dior and Moet & Chandon, LVMH announced its plan to acquire Tiffany and it’s iconic robin’s egg blue gift boxes at the end of 2019.
But the French company walked away from its proposal last month after claiming a series of poor decisions by Tiffany’s board since the deal was unveiled late last year. Tiffany has said there was no valid basis to call off the deal.
The battle also has shifted to a Delaware court where Tiffany lodged a complaint and LVMH filed a counter-claim.
The US court has set a trial date of January 5, 2021, while a judge in Delaware has urged talks between the parties to avoid litigation.
On Tuesday, the European Commission gave a green light to the deal.