Tiffany, LVMH are in talks to cut back the worth of their enterprise and resolve disputes, sources say
Jeweler Tiffany & Co. and Louis Vuitton owner LVMH are discussing new terms for their merger that could help resolve an ongoing dispute between the two companies, CNBC’s David Faber reported Tuesday, citing people familiar with the discussions.
Under the revised terms, LVMH would purchase Tiffany for $ 130 to $ 133 per share, compared to an original price of $ 135 per share, Faber reported, noting that the talks remain fluid. He added that the retailers are trying to close a deal as soon as possible. There used to be a discussion about a takeover bid, but that’s unlikely right now, said those familiar with the talks.
Tiffany and LVMH representatives did not immediately respond to CNBC’s requests for comment.
Tiffany shares rose nearly 5% to about $ 128.75 on Tuesday. The stock is down around 8% this year. Tiffany has a market capitalization of around $ 15.2 billion.
On Monday, Tiffany announced that it had received all of the regulatory approvals required to complete the acquisition after receiving the nod to it from the European Commission.
In the midst of the coronavirus pandemic, LVMH has been trying to get out of what would have been the largest in the luxury industry.
Tiffany has filed a lawsuit to enforce the deal, claiming the French conglomerate purposely blocked the deal. LVMH has since countered, claiming Tiffany was badly managed during the global health crisis.