LVMH backs down on renegotiating Tiffany deal: Sources

LVMH backs down on renegotiating Tiffany deal: Sources

FILE PHOTO: A LVMH luxury group logo is seen prior to the announcement of their 2019 results in Par
FILE PHOTO: A LVMH luxury group logo is seen prior to the announcement of their 2019 results in Paris, France, January 28, 2020. REUTERS/Christian Hartmann

NEW YORK: French luxury goods giant is not seeking to renegotiate its US$16.2 billion acquisition of US jewelry chain Tiffany & Co after deliberating whether to do so, people familiar with the matter said on Friday.

LVMH CEO Bernard Arnault had been in talks with his advisers this week to identify ways to pressure Tiffany to lower the agreed price of US$135 per share in cash, Reuters reported on Wednesday.

He considered whether he could argue that the New York-based company is in breach of its obligations under the merger agreement, sources said at the time.

LVMH has decided it will not raise the issue of repricing the deal with Tiffany for now, after it considered the legal hurdles involved, the sources said.

The deal has yet to receive some of the necessary regulatory approvals, and it's unclear whether LVMH will revisit the issue before the deal closes, especially if Tiffany’s financial condition were to deteriorate.

The sources asked not to be identified because the deliberations are confidential.

LVMH and Tiffany did not immediately respond to requests for comment.

Source: Reuters

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