// LVMH confirms it is not considering buying Tiffany & Co shares on the market
// The news follows a recent board meeting amid concerns of Tiffany & Co’s current financial state
// LVMH first announced its £13bn takeover of Tiffany & Co in November
LVMH has done a u-turn on its proposed €14.7 billion (£13 billion) takeover of Tiffany & Co, confirming it would no longer purchase its shares on the open market.
In a statement, LVMH said its board of directors met on Tuesday to discuss the proposed deal with attention on the development of the coronavirus pandemic and potential impacts the results and perspectives of Tiffany & Co could have on LVMH.
“Considering the recent market rumors, LVMH confirms, on this occasion, that it is not
considering buying Tiffany shares on the market,” the parent company of Louis Vuitton stated.
READ MORE:
- LVMH’s £13bn takeover of Tiffany & Co thrown into doubt
- LVMH takeover of Tiffany approved “overwhelmingly” by investors
- LVMH buys Tiffany for €14.7bn
What this means for the luxury conglomerate’s planned acquisition of Tiffany & Co is not yet unclear.
The news comes after reports emerged that the deal had been thrown into doubt as Tiffany & Co grapples with a major upheaval in the US economy thanks to the pandemic and widespread protests against police brutality.
There was also speculation LVMH board members were concerned about the jewellery brand and retailer’s ability to cover its debt covenants at the end of the transaction, which had been expected to conclude mid-year.
LVMH’s deal to acquire Tiffany & Co was initially announced back in November, and involved the French luxury conglomerate paying $135 per share in cash to acquire the jeweller.
The deal was subsequently approved “overwhelmingly” by the jeweller’s shareholders in February.
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