Contest Trader

Don't miss the chance to cash-in prizes totaling

$10.000
Register here for the Ultimate demo trading competition

Maybe the third time's a charm for LVMH and Tiffany & Co.

Maybe the third time's a charm for LVMH and Tiffany & Co.

Tiffany & Co. buyout postponed for three months.

It seems that a pattern starts to emerge between two of the most famous luxury brands in the world, the French #LVMH, and the American #Tiffany & Co. The two companies are trying to fully close a $16.2 billion deal since November last year.

At that time, the deal was partially closed, but given that Tiffany was in debt, LVMH reconsidered its position.

However, this year in June, the two companies decided to give it another try. The unprecedented times made LVMH reconsidered its position once again, and, at a board meeting in Paris, agreed that Tiffany's acquisition price is too high, and "that it is not considering buying Tiffany shares on the market."

But as the world is slowly starting to return to normal, the buyout is in sight once again. The deal that began in November was supposed to be closed by August 24, but they awarded themselves another three months to complete the transaction.

According to the filing made by Tiffany to the US Securities and Exchange Commission, the new deadline is pushed as far as November 24. It is the ultimate deadline that Tiffany can apply for under the deal. Also, because the buyer is European, the agreement between LVMH and Tiffany must undergo regulatory approvals from the European Union.

At the moment of writing, during the European session, LVMH stock price is trading 1.25% higher, while, before the opening bell of the American session, Tiffany & Co. share is trading at -3.64%.

Sources: reuters.com, cnbc.com, finance.yahoo.com

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com