I think the French will find it revolting if it was the other way around. Lol.
LVMH buying Tiffany
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Some would, perhaps. But let's look at the facts: both of these companies are large, international, publicly traded entities that have really nothing to do with being French or American.
b I know but LV has always been known to be a French luxury brand and Tiffany, American. I don't think most people care about the stock market tbh.
Those of us who own LVMH and/or Tiffany shares right now care A LOT.
Look, I get it. You're happy with the acquisition. My sadness has nothing to do with the stock market obviously. Let's leave it at that.Those of us who own LVMH and/or Tiffany shares right now care A LOT.
i feel like Tiffanys is gonna have yearly price increases now like LV
that means i should start buying again
that means i should start buying again
and some unhappy SA'si feel like Tiffanys is gonna have yearly price increases now like LV
that means i should start buying again
There is something missing when purchasing a luxury bag from a famous French company only to find out it was made in Texas. The “customer service “ line refuses to find one made from France for you and if your SA at your boutique doesn’t have one then you are just taking your chances.
LVMH scraps $16.2 billion deal with Tiffany
PUBLISHED WED, SEP 9 20207:30 AM EDT UPDATED 30 MIN AGO
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.
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.
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.
Thank you for posting @uhpharm01. Though the hints were there, the confirmation is very important news.
Someone posted this in the Tiffany forum and stated it looked like Macron helped LVMH avoid the deal by delaying approvals
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
This whole situation is a mess and it's damaging both companies' images to some degree. It's making Tiffany look undesirable and LVMH look unreliable. LVMH even appears to have the French government in its pocket to do its dirty work.
Tiffany should have avoided dealing with LVMH to begin with. If you play with a "wolf in cashmere" it just might draw blood. Sadly, this sordid affair is likely to play out in courts for years.
Tiffany should have avoided dealing with LVMH to begin with. If you play with a "wolf in cashmere" it just might draw blood. Sadly, this sordid affair is likely to play out in courts for years.