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Amid a looming court battle, Tiffany & Co. has reportedly accepted a new lowered takeover bid from LVMH.
Amid a looming court battle, Tiffany & Co. has reportedly accepted a new lowered takeover bid from LVMH.

Tiffany & Co. board approves new $15.8 billion LVMH offer: report

According to US media reports, the board of Tiffany & Co. has accepted a revised acquisition offer of $US131.50 per share from Moët-Hennessy Louis Vuitton SE (LVMH) as the two companies prepare to face court in January.

Citing sources close to the negotiation, business publication Financial Times reports that the fresh deal was approved during an overnight meeting on Wednesday 28 October and will be submitted to Tiffany & Co. shareholders for approval.

“The new offer represents a reduction of $US3.50 per share and wipes $US425 million from the value of the deal, from $US16.2 billion to $US15.8 billion. However, it remains LVMH's most expensive acquisition to date”

The new offer represents a reduction of $US3.50 per share and wipes $US425 million from the value of the deal, from $US16.2 billion to $US15.8 billion. However, it remains LVMH's most expensive acquisition to date.

On Monday 26 October, Tiffany & Co. submitted a filing to the US Securities Exchange Commission (SEC) confirming that the final regulatory hurdle to the original deal had been cleared, with the European Union signing off on the merger.

“All regulatory approvals required for the completion of the Merger have now been obtained,” the filing noted.

» View full timeline of acquisition

Notably, Tiffany & Co. recently released its preliminary financial results for August and September, indicating an increase in revenue of 25 per cent compared with the same period in 2019 led by strong sales in Mainland China and e-commerce.

While sales in its largest market – the US – were still well below 2019 levels, the company noted that sales had substantially improved since May.

LVMH pulled out of the deal on 9 September, citing Tiffany & Co.’s poor financial performance and alleged mismanagement of the COVID-19 crisis.

Tiffany & Co. then initiated legal proceedings against the French conglomerate in a US court, seeking full compliance with the original Merger Agreement terms. A trial date was subsequently set for 5 January 2021.

 

More reading:
TIMELINE: Inside the Tiffany & Co. and LVMH merger
LVMH files countersuit against Tiffany & Co.; trial date set
LVMH and Tiffany & Co. deal collapses; court battle looms
Tiffany & Co. reports 37 per cent decline in sales; optimistic for China-led recovery
LVMH reiterates commitment to Tiffany & Co. takeover as revenues decline
 











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