Tiffany Talks Lawsuits, LVMH Moet Hennessy Listens
Following news that multinational luxury and fashion goods titan LVMH Moet Hennessy (OTC: LVMHF) wanted to lower the price on its acquisition of Tiffany & Co. (NYSE: TIF), sources say that the jewelry company threatened to launch a lawsuit in response. Today, LVMH says it won't try to renegotiate its deal with Tiffany, prompting a more than 7% rise in Tiffany's share value as investors bid the stock up on the favorable news.
Last year, LVMH agreed to purchase Tiffany for $16.2 billion, or $135 per share, with a closing date originally set for June 2020, but postponed until October due to regulatory hurdles. However, the COVID-19 pandemic inflicted a heavy toll on Tiffany's business as the virus slammed American and global economies through the first quarter of 2020.
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Source Fool.com
