Breakfast at Tiffany’s, with discount. The French group LVMH gets the go-ahead to purchase Tiffany, but at a lower figure than that agreed a year ago: the coronavirus has hit luxury purchases and, therefore, had called the agreement into question. LVMH’s step backwards had sparked a legal battle: the next step would take place before an American court next January. Instead, peace came.
LVMH has reached an agreement to acquire Tiffany at $ 131.5 per share, less than the initially agreed $ 135. The new proposal equates to a price for the American luxury brand of 15.96 billion dollars. The discounted price offers a slight premium (+ 1.2%) over the close ($ 129.95) on the Tiffany Stock Exchange on Wednesday on Wall Street. The agreement reached (which still requires a final approval by the shareholders’ meetings) allows the French to save over 400 million compared to an agreement valued a year ago over 16 billion dollars. And, above all, to have wide access to the star and stripes luxury market.
