Accordin to Women’s Wear Daily, the website that is the most accredited in the fashion business, the acquisition of Tiffany & Co by LVMH wobbles. The $ 16.2 billion deal for the purchase of the American jewelry giant would be challenged by the impact of the covid-19 epidemic, which would be heavy. The newspaper reports some more details: the members of the LVMH board of directors would meeted in Paris on June 2 to discuss the matter. Last November, LVMH agreed to acquire Tiffany for 135 per share. In early June, however, the shares are worth less: around $ 128. But this is not the point.
The French giant led by Monsieur Bernard Arnault is concerned about the impact of the coronavirus pandemic, which has caused over 100,000 victims in America and an economic crisis, but also about the unrest caused by the death of George Floyd in Minneapolis. The guerrilla climate in many cities indicates a very difficult situation also in perspective, the members of the LVMH board of directors probably think.
Not only. According to article from the Women’s Wear Daily, the same members of the LVMH board are concerned about Tiffany’s ability to cope with the financial deadlines of the coming months. The doubts raised, without being officially confirmed, could also be a simple signal of the will to renegotiate the agreement reached. But also the indication of a sensational rethink that could lead to a backtrack by the French.
