Tiffany & Co and LVMH have reached an agreement after all: the takeover goes ahead, but for the reduced price of 131.50 dollar per share. That results in a discount of around 400 million dollar.
Lower price per share
French luxury group LVMH buys the American jewellery chain Tiffany anyway. Before an undoubtedly bitter legal battle began – scheduled for January 2021 – the fiancées reached an amicable settlement: instead of the 16.2 billion dollar, or 135 dollar per share originally agreed, LVMH now pays 131.5 per share, the French Vuitton owner says. That amounts to some 15.8 billion dollar, which is a reduction of 400 million.
Last year, the two luxury companies promised to enter into a deal with each other, but after the outbreak of the coronary pandemic, there was a hitch. Tiffany saw a 44% drop in turnover due to the first corona wave this spring. LVMH-owner Bernard Arnault regretted the expensive purchase and accused the jeweller of poor management during the lockdown.
“More convinced than ever”
Lawsuits were brought on both sides, but it was the competent judge for the final trial in Delaware at the beginning of next year who called for another attempt at reconciliation. That seems to have been successful, because suddenly nothing but praise comes out of Arnault’s mouth.
“We continue to be convinced of the incredible potential of the Tiffany brand’, says the multi-billionaire in a press statement. “We believe LVMH is the right home for Tiffany and its associates in this exciting new chapter.”
