LVMH snags $400 million discount on Tiffany deal after legal spat
Hong Kong (CNN Business)Tiffany (TIF) and LVMH (LVMHF) are getting back together.
The New York jeweler has agreed to accept a lower purchase price from the French conglomerate, ending a dramatic spat that had threatened to derail the $16 billion takeover.
The companies said in a joint statement on Thursday that they have modified the terms of last year's merger agreement, lowering the price per share that LVMH will pay from $135 to $131.50. The move now values Tiffany at $15.8 billion, $400 million less than the $16.2 billion originally agreed upon. It also ends a legal battle over the deal.
LVMH announced in September that it would abandon its planned acquisition of Tiffany, which was expected to be the biggest luxury goods deal in history. LVMH said that a trade fight between Brussels and Washington had forced it to scrap the agreement, but some analysts believed that the move was a bid to renegotiate the sale.
Tiffany argued that the decision had no legal grounds. It sued LVMH in a Delaware court, saying that the French group had breached its obligations and should go ahead with the merger.
Weeks later, LVMH countersued, arguing that the coronavirus pandemic had seriously damaged the US jeweler's business and carried "devastating and lasting" effects. Read More