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Tiffany, LVMH Agree To Lower Price October 27, 2020 (1 comment)


New York, NY—With the Tiffany/LVMH merger on the rocks, the two parties are trying one more time—albeit through indirect talks—to save the marriage. LVMH wanted to renegotiate its initial $16 billion purchase price after Tiffany sales plummeted during the COVID pandemic, but Tiffany said a deal’s a deal. LVMH, in turn, prepared to scrap the deal entirely and the two sides ended up in court, each slinging allegations at the other. 

Now both sides have agreed to a slightly lower price. The original sale price was $135 per share; Tiffany has reportedly signaled it will accept a lower price as long as it’s over $130 per share. Seeking Alpha says $130 to $133 per share. For much of the past few months, TIF shares were trading in the low $120s but at press time they rose to about $134.

On Monday, the merger cleared its last regulatory hurdle, in the European Union. Stay tuned.

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Comments (1):

Both parties can afford the half billion reduction in price, so as a consideration they should close the deal at $15.50 billion and GIVE the five hundred million dollars to Research and development of the COVID virus vaccine, which will help all mankind.
It will also be a feather in their respective caps, proving the one percent DOES care.

By PG DASWANI on Nov 7th, 2020 at 5:36pm

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