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.
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
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