Tiffany Files Lawsuit Against LVMH To Enforce Merger


Let's turn to the latest developments in the ongoing legal battle between the US jewelry giant Tiffany and French luxury group lvmh. Last November lvmh agreed to acquire Tiffany, but tiffany has since accused of trying to run down the clock in order to let the deal run out of time. So then now trying to fast track the process well, Dana Thomas is the author fashioned police, the price of I fashion and the future of clothes, and to say, she joins us once again from Paris good morning. Good Morning. So bring us up to date in a story that twists and turns an awful lot. Well. This is this is the third time in my career that lvmh's done this week it's become a big big the deal the takeover deals become a big news story. They did it with Gucci they did it with our they lost both of them, and now they're doing it with tiffany and we'll see what happens the latest news is yesterday. The Delaware Court of Chancery where because they'll tiffany is registered in the state of Delaware. In the United States. Has, set a digital hearing date for four day trial starting January fifth and they're gonNA. They're if they don't settle this beforehand, they're going to go to trial and tiffany is pushing for the trial November while Lvmh, wanted it in March or April. So the courts split the split the difference in set it for January this is important because it's right before the US regulatory approval for the sixteen point two, billion dollar acquisition expires on February third. This is the largest bid for a takeover that lvmh did and it's I think the largest ever in the in the luxury industry. She doesn't want to pay that much now and understandably so. Tiffany is down. Had A first-half operating loss of forty, five, million dollars a loss of forty five in the same time. Last year, it had earnings of three, hundred, forty, five, million. So they feel like, yeah, we made this bid last November before Kovic. Everything else hit and Tiffany was thriving and now it's not worth sixteen point two, billion dollars. We'd like to reevaluate that and Tiffany's like saying too bad for you. Well, neither seemed to be giving any leeway on this because toughen says that it it doesn't see what has to cut its prices. It's ready to go to court and LVMH's saying start rushing us because you know the reason why I'm trying to Russia's you don't want us to look at the way that you handle your books during cove it. Well, it's not even just handling the books. All the stores were closed out around the world and people still ordered online. Could you would you order a ending tiffany jewelry online? Have it delivered to your mailbox? I don't think so unless you really needed to get married and that was that but I think that Tiffany Tiffany is. Really pushing for the most important thing which is that you know if they if they go to court lvmh. Chairman. Bernard Arnault could be deposed in the case and asked if he pressured the French government to help give the French group and out is the with this deal because the French government is the ones who stepped in and said, you know we're not going to you can't do this so. The firm, you know originally said that they were dropping this because of a US trade dispute, which is you know. Not terribly clear. So are no what have to swear you know in the courthouse on a Bible or or not in the courthouse because it'll be digital and say no I didn't ask the government to given how well connected he is with the government and with. President. Matt Cole. I wonder and and I'm not the only one to wonder and obviously tiffany wonders, and so it'll be interesting to see how that plays out. Dana how is this going to play out given the fact I mean you mentioned the fact that Lvmh's attempts to by the likes of Gucci didn't work out. Right well, there's a couple of different scenarios. The first one is it tiffany gets. To close the deal at the original price. I, doubt that's going to happen because Bernardo is a really shrewd businessman and he does not overpay. The second one is that the deal is done at a lower prices previously agreed they get some mediators in there they work it out before you tiffany's a publicly traded company. This could really make their their stock collapsed to a point that you know they're really. Hurting thirties at you know Arno. Tries to go hostile takeover because it is a publicly traded company and starts buying tiffany on the public market at a reduced price and eventually has so much that he says, boom I'm owner of the company too bad for you.

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