Skip to main content

Market Overview

LVMH Wants To Reconsider Buying Tiffany Amid Worsening US Conditions

LVMH Wants To Reconsider Buying Tiffany Amid Worsening US Conditions

French luxury group LVMH Moët Hennessy Louis Vuitton SE (OTC: LVMUY) whose interests span from watches and jewelry to wine and spirits is reconsidering its decision to buy Tiffany & Co. (NYSE: TIF) due to the deteriorating situation in the United States market.

What Happened

The $16.2 billion takeover of Tiffany by LVMH is mired in uncertainty as concerns mount over the impact of the coronavirus pandemic and the resultant economic damages as well as internal unrest in the U.S. over the killing of George Floyd at the hands of the police, reported WWD, a fashion trade publication. 

A board meeting of the LVMH was held in Paris on Tuesday night to discuss the takeover amid the worsening situation in the U.S., which is Tiffany’s largest market. 

Tiffany shares slumped by nearly 9% after the news.

Why It Matters

Board members raised concerns about the ability of Tiffany to cover its debt covenants post-takeover due to be completed mid-2020, reported WWD.

The board of LVMH remains undecided on completing the takeover deal, but members were of the view that the deal should be reconsidered.

Tiffany shareholders have approved the deal in February. Last November, LVMH had agreed to acquire the jeweler for $135 a share. 

Price Action

On Tuesday, Tiffany shares closed lower by 8.93% at $117.03. LVMH OTC shares closed 1.41% higher at $86.39.

Image Credit: Wikimedia.


Related Articles (TIF)

View Comments and Join the Discussion!

Posted-In: Louis Vuitton ParisM&A News Management Global Media General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at