Reconciliation between Tiffany & Co and LVMH?

LVMH and Tiffany & Co are reportedly discussing a “discount” on the planned 16.2 billion euro acquisition. Tiffany wants LVMH to keep its purchase promise, but the French luxury house regrets the expensive deal.

A compromise in the making?

Will LVMH and Tiffany & Co still reach an amicable settlement? Both parties are having talks behind closed doors to renegotiate the deal. In principle, the jewelry chain and the Vuitton mother had given each other the ‘yes’ word last year, but due to the corona crisis LVMH went looking for a way out of the takeover deal. However, Tiffany does not intend to let that happen.
 

While at first the situation seemed to be deadlocked, with lawsuits on both sides and the rumour that LVMH owner Bernard Arnault even contacted French President Macron, a compromise would now be considered. Tiffany is said to be prepared to lower the price to 132 dollar per share. According to the original agreement, LVMH would pay 135 dollar per share.
 

However, there is still no guarantee that the negotiations will work out, Bloomberg emphasises. There is a chance that LVMH will find the rebate too low, or that it will stiffen its stance and cancel the takeover altogether. In that case, both parties may have to fight it out in court, at the trial starting in Delaware on 5 January. Ironically, the European competition watchdog already announced this week that it has nothing against the merger.