Tiffany and LVMH discuss price cut to settle deal dispute

Tiffany and LVMH discuss price cut to settle deal dispute

Tiffany & Co. logo outside a store in Paris
FILE PHOTO: A Tiffany & Co. logo is seen outside a store in Paris, France, September 18, 2020. REUTERS/Charles Platiau

LONDON: US jeweller Tiffany & Co and French luxury goods giant LVMH are in talks to settle their dispute over a US$16 billion takeover at a price slightly lower than that initially agreed, sources familiar with the matter said.

The negotiations were based on a price in the range of US$131-US$134 for each Tiffany share, against the previous price of US$135.

Tiffany last month sued the Louis Vuitton owner in a Delaware court, alleging that the French company had been stalling the deal and that it had improperly tried to renegotiate the deal.

LVMH had countersued, alleging that the US company has been mismanaged during the COVID-19 pandemic.

CNBC earlier reported that the two parties were in indirect talks to settle the dispute.

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

Tiffany shares rose more than 3 per cent on Tuesday to US$126.87 after the company said on Monday that it had received the nod from the European Commission for the deal completion, thus clearing all regulatory hurdles.

Source: Reuters