No love for Tiffany
Tiffany is chasing that check after attempting to fast-track legal proceedings regarding the acquisition of the company by LVMH. On Thursday, LVMH tried to block the attempt due to “intervention by the French government and the U.S. jeweler’s weakening performance.”
The $16 billion dollar purchase was set to take place last year. As we all know, the global economy has changed drastically since then. “Tiffany offers no reason why this court should move mountains and conduct a full-blown trial involving complex facts and international discovery in less than two months amidst a global pandemic,” LVMH said in its court filing.
It looks like Bernard Arnault, CEO of LVMH, is in no rush to close a deal.
Tiffany has chosen to sue LVMH and asked the court to expedite proceedings as it seeks to have a ruling by November 24th. If the court does not approve Tiffany’s request, the odds that the deal will be closed by that November 24th deadline is slim to none.
If a deal is reached, it would be the biggest the luxury industry has ever seen.
There are always two sides to every story. For Tiffany, they want to get a hold of the big cheque they were promised but for LVMH, they feel like Tiffany could be trying to rush the deal to avoid scrutiny of its management of the COVID-19 pandemic.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.