Contest Trader

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

$10.000
Register here for the Ultimate demo trading competition

LVMH countersues Tiffany & Co

LVMH countersues Tiffany & Co

The failed merger became a problem for both companies

After three failed attempts to merge, and a lawsuit intended by Tiffany & Co, the French luxury goods giant LVMH decided to take action.

LVMH filed a lawsuit in Delaware’s Chancery Court in response to the one Tiffany filed earlier this month after the former backed-out of the $16 billion merger. In its filing, LVMH says that Tiffany has been mismanaged during the pandemic and will be vulnerable in the long-term because the jewelry industry is it likely to suffer in the next years.

According to legal experts, for an acquiring company to be released from honoring a #merger contract, it has to show that the target company underperformed compared to others in its industry. "The pandemic's disruption to the luxury industry and to Tiffany in particular will persist well into 2021 at a bare minimum," LVMH's complaint read. "Tiffany is particularly ill-suited for the challenges ahead," as the American company posted a loss of $45 million in the first six months of the year.

Moreover, the prospects of LVMH winning the #lawsuit are under question, as the Delaware courts have only once ruled in favor of a buyer to walk away from a previously agreed merger.

So far, no date has been set for the #trial.

Currently, LVMH is trading 0.51% higher, while Tiffany & Co stock price ended the day at $116.70/share after gaining 0.91%.

Stay in the loop with CAPEX.com!

Sources: ft.com, marketwatch.com, finance.yahoo.com


Maklumat yang disediakan oleh za.capex.com bukan berbentuk tawaran atau permintaan untuk tujuan pembelian atau penjualan apa-apa produk kewangan yang disebutkan di sini atau melibatkan perundngan, atau nasihat mahupun cadangan berkenaan dengan kewangan produk tersebut.

Maklumat ini disediakan untuk edaran umum. Ia tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan tertentu dari mana-mana penerima.

Anda harus bebas menilai setiap produk kewangan dan mempertimbangkan kesesuaian produk kewangan sedemikian, dengan mengambil kira objektif pelaburan tertentu anda, keadaan kewangan atau keperluan khusus, dan berunding dengan penasihat kewangan bebas, sebelum berurusan dalam produk kewangan yang disebutkan dalam dokumen ini.

Maklumat ini tidak boleh diterbitkan, diedar semula, diterbitkan semula atau diedarkan secara keseluruhan atau sebahagian kepada mana-mana individu lain tanpa kebenaran bertulis daripada Syarikat terlebih dahulu.

Prestasi lalu tidak sentiasa menggambarkan prestasi atau kemungkinan masa depan. Sebarang pandangan atau pendapat yang dikemukakan hanyalah pandangan penulis semata-mata dan tidak mewakili za.capex.com