French luxury group LVMH offers to buy U.S jeweler Tiffany: sources

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#61
I think they are jumping to conclusions a little fast with the headline "deal is uncertain". A little too fast for my liking.

Sure, they might try to re-negotiate, maybe have some interesting conversations over this - but all in all, no one can predict any type of outcome speaking of current issues with Covid-19, equal rights movement and those using the protests wrongfully as sword & shield for looting and other crimes. And the protests, as necessary and legitimate as they are, might turn out to be major Covid-19 hotspots for spreading the virus as people travel to and from them. Which might lead to an even worse Covid-19 crises than we've seen and we are seeing right now. Which would (will) be bad for anyone and any business/deal no matter how big or small.

With this on the horizon, I'd be talking a lot while in the middle of such an acquisition & merger. Playing through all possible situations/outcomes. Checking every possible move. Legal options, contractual obligations and rights - and obviously, if necessary, a way out of it all.

I'm not subscribed to WWD, so I can't check the original source on this.

Personally I don't think there's anything worth the bits and bytes produced over this right now. There might be at some point, but not now.

I think this is a major problem overall & anyway right now. Far too many people/businesses have simply thrown the towel instead of keeping calm, collecting their thoughts and map a possible way out. You can always quit/get out, but not many find back in/ start all over after that. But if you talk to people, if you stay positive & focused you might find a way.

Here's a really inspiring & uplifting example reported about in Bloomberg's Sunday Strategist Newsletter a few weeks back:

https://www.bloomberg.com/news/arti...ow-a-brooklyn-wine-shop-bucked-the-covid-odds

Of course, this isn't a 16 billion M&A. ;) But it emphasizes what I mean.

Kind regards,
Oliver
 
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#63
The latest scoop... https://www.jckonline.com/editorial-article/lvmh-fresh-look-tiffany-purchase/
Sounds like buyer's remorse to me. Maybe this will actually help Tiffany in the long run and it won't get sucked in to LVMH.

No offense to any Bulgari lovers, but I personally think LVMH blinged out Bulgari and made it all about screaming bling. They lost the fact Bulgari is about classic Italian bold, and being bold is very different than screaming bling. Of course the LV brand is all about a screaming logo, even their jewelry line is just logo jewelry. I hope LVMH does not do that to Tiffany.

You can tell I'm not a screaming logo jewelry fan so it's just my opinion only of course. I am sure there are folks out there who love it.

To me, wearing Tiffany jewelry is about style, elegance, with a bit of chic and fun. You know it's Tiffany, it's iconic, but the piece is not a logo screaming at you (unless you are a porcelain paper cup).
 
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#66
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#69
LVMH scraps $16.2 billion deal with Tiffany
PUBLISHED WED, SEP 9 20207:30 AM EDT UPDATED 30 MIN AGO


  • LVMH is pulling out of its acquisition of Tiffany.
  • The French luxury goods giant cited the threat of U.S. tariffs on French goods and Tiffany’s request to extend the deal deadline to the end of the year.
  • The coronavirus pandemic has hit the luxury retail sector hard, throwing the deal into doubt.
Louis Vuitton owner LVMH is scrapping its $16.2 billion acquisition of Tiffany, a deal that would have been the biggest ever in the luxury industry.

The luxury-goods giant said Wednesday the merger agreement signed last November provides for a closing deadline no later than Nov. 24, 2020. But Tiffany had requested to extend the date to Dec. 31, and the French minister of foreign affairs had directed the company to defer the deal until after Jan. 6 due to a U.S. threat of taxes on French goods.




The company said in a statement that it will not be able to complete the acquisition of Tiffany “as it stands.” It said it needs additional time to figure out any impact from potential U.S. tariffs on French goods, and therefore can’t close the deal before the end of the year.

Tiffany shares tumbled 10% in early trading Wednesday. Tiffany shares, which have a market value of $14.8 billion, have fallen nearly 9% this year.

A representative for Tiffany did not respond to a CNBC request for comment. The Wall Street Journal reported that the U.S. jewelry chain has filed a lawsuit in Delaware to enforce the agreement, saying the request from the French government has no basis in law.

The coronavirus pandemic has hit the luxury retail sector hard, sending Tiffany’s same-store sales down 44% and throwing the LVMH deal into doubt. Investors worried whether the French company overpaid, and LVMH CEO Bernard Arnault was looking to lower the price of buying the U.S. jewelry chain, according to people familiar with the matter.

Amid the turmoil, LVMH and Tiffany had agreed to push back an initial deadline from Aug. 24 to Nov. 24, as talks started to sour.




Analysts had said they believed the transaction was still going to go through, but at a lower price.

With international tourism seemingly dragged to a halt, Tiffany’s and other luxury retailers’ businesses have been battered, as many relied on big spenders from China venturing to their flagship shops in the U.S. to splurge on handbags and diamonds. In buying Tiffany, LVMH had been looking to grow its jewelry business, which had been one of the hottest and fastest-growing categories in luxury until the pandemic hit.

At the time of Tiffany’s earnings report in early June, the company was still waiting to clear key regulatory hurdles for the deal.

Some other retail-related deals have been called off because of the pandemic.

The biggest U.S. mall owner Simon Property Group has terminated its deal to buy the high-end mall owner Taubman, prompting Taubman to file a counterclaim against Simon’s accusations. The private-equity firm Sycamore also backed out of its deal to take over Victoria’s Secret from L Brands.

Correction: The merger agreement signed last November provides for a closing deadline no later than Nov. 24, 2020. An earlier version of this story misstated the date.
 
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#70
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#72
Correct link to NYTimes
www.nytimes.com

Tiffany’s $16 Billion Sale Falls Apart in Face of Pandemic and Tariffs (Published 2020)

The luxury giant LVMH Moët Hennessy Louis Vuitton backed out of its deal to buy the jeweler.
www.nytimes.com www.nytimes.com
I guess Macron’s cabinet intervened.
So much winning...
www.barrons.com

Tiffany Stock Is Slumping After LVMH Says Takeover Can’t Happen

LVMH said that the French government asked the company to delay the acquisition until Jan. 6, citing potential tariffs from the U.S. Tiffany filed a lawsuit on Wednesday, claiming the French foreign ministry’s request is a smokescreen to allow LVMH to back out of the deal.
www.barrons.com www.barrons.com
 
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#73
Also not sad this didn't go through. Just feel Tiffany has sort of lost its way in recent years, but would rather they not be swallowed up by someone else! Like so many companies, they expanded so dramatically in the 90s, and in my opinion, just sort of diluted the value of their brand. I wish they would scale way back, and go back to their roots. I loved the designs best when John Loring was at the helm as design director. I feel less affinity for some of the more recent pieces.
 
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