Financial News
Written by: Lin Leqian
2020-06-04 16:42
Date of last update: 2020-06-04 16:42LVMH, the world's largest luxury goods group, announced last year that it had acquired the US jewelry company Tiffany & Co. However, the transaction has been blocked recently and LVMH may withdraw its acquisition plan. According to the latest Reuters report, Bernard Arnault, chief executive of LVMH, is considering putting pressure on the other party to renegotiate and reduce the acquisition price, but Tiffany believes that there is no legal basis for renegotiation.
LVMH announced last year that it would acquire Tiffany for US$16.2 billion (over HK$126.7 billion). The transaction will be completed by the middle of this year. However, according to the American Fashion Newspaper "WWD", due to the recent new coronary pneumonia epidemic and large-scale demonstrations in the United States, the LVMH board of directors is worried about whether Tiffany can repay all its debts after the merger and consider canceling the acquisition plan.
"Reuters" reported that Arnault is considering pressure on Tiffany's violation of the subscription agreement, asking the other party to reduce the cash price of $135 per share. However, Tiffany believes that there is no legal basis for renegotiation and expects to comply with the terms of the merger agreement. It is reported that Arnault has not renegotiated with Tiffany.
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