LVMH Delays Tiffany Acquisition
August 27, 20
(IDEX Online) - French luxury conglomerate LVMH has delayed its $16.2bn acquisition of US jeweler Tiffany & Co, following speculation that it was seeking a price reduction.
The deal should have been concluded on 24 August, but both sides are understood to have agreed a proviso that the absolute deadline could be pushed back to 24 November.
LVMH chief executive Bernard Arnault (pictured) reportedly sought ways to lower Tiffany's cash price of $135-a-share, according to earlier reports in in the fashion Bible Women's Wear Daily (WWD).
There was fevered speculation about the deal in June, but it is now understood the price has not been renegotiated. The deal, which was agreed in November 2019, has yet to receive regulatory approvals.
It will be the biggest ever acquisition by LVMH - Moet Hennessy Louis Vuitton - and would consolidate its position in hard luxury following its acquisition of the Italian watchmaker Bulgari for $5.2bn in 2011.
New York-based Tiffany reported a $4.4bn of sales for last year, matching its record high in 2018.