Tiffany: to sue LVMH over delayed takeover
(CercleFinance.com) - Tiffany is to take action against LVMH following its announcement, the Financial Times says.
"US jeweller alleges French luxury group has deliberately stalled process to force renegotiation of deal," the newspaper reports.
Meanwhile, LVMH says that a string of events is likely to weaken the deal,.
LVMH's Board also notes Tiffany's request to extend the deadline for completion of the agreement from 24 November 2020 to 31 December 2020.
In the light of these elements, and having taken note of the initial legal analyses carried out by LVMH, the Board of Directors has decided to abide by the terms of the Agreement and Plan of Merger concluded in November 2019, which provides for a deadline for the closing of the transaction no later than 24 November 2020, and noted that, as things stand, the LVMH Group would therefore not be in a position to complete the acquisition of Tiffany & Co.
After closing pretty much flat yesterday, the Tiffany share is down 8.5% in pre-market trading on Wednesday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
"US jeweller alleges French luxury group has deliberately stalled process to force renegotiation of deal," the newspaper reports.
Meanwhile, LVMH says that a string of events is likely to weaken the deal,.
LVMH's Board also notes Tiffany's request to extend the deadline for completion of the agreement from 24 November 2020 to 31 December 2020.
In the light of these elements, and having taken note of the initial legal analyses carried out by LVMH, the Board of Directors has decided to abide by the terms of the Agreement and Plan of Merger concluded in November 2019, which provides for a deadline for the closing of the transaction no later than 24 November 2020, and noted that, as things stand, the LVMH Group would therefore not be in a position to complete the acquisition of Tiffany & Co.
After closing pretty much flat yesterday, the Tiffany share is down 8.5% in pre-market trading on Wednesday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.