Image credit: LVMH
The deal between LVMH and Tiffany & C °, which was announced earlier this year, could potentially fail.
LVMH is revising its participation in the deal amid the COVID-19 pandemic and the unrest in the United States. The French group seeks to reduce the price offer, and, according to some sources, this step is based on the argument that Tiffany will probably not be able to fulfill the debt obligations stipulated in the February agreement, says the Diamond Loupe.
Tiffany closed its stores in the US after the coronavirus pandemic hit the country.
Previously it was reported that LVMH would buy Tiffany for $135 per share in cash, or for €14.7 billion or $16.2 billion, as per the report from Tiffany.
Analysts say that LVMH should perhaps not be looking at short-term fallout from COVID-19 restrictions, predominantly caused by temporary store closures and a drop in tourism, to back out of the engagement, adding that such a move could potentially harm LVMH’s credibility significantly, said the agency.
Alex Shishlo, Editor of the Rough&Polished European Bureau
