// LVMH board members call meeting amid concerns about Tiffany & Co’s current financial state
// Tiffany & Co has been grappling with the impact of Covid-19 and widespread protests in the US
// LVMH first announced its £13bn takeover of Tiffany & Co in November
LVMH’s €14.7 billion (£13 billion) takeover of Tiffany & Co has been thrown into doubt as the jewellery retailer grapples with a major upheaval in the US economy.
According to WWD, LVMH board members arranged to meet in Paris yesterday to discuss the proposed deal, with executives concerned about the Covid-19 pandemic disrupting the US economy and the widespread protests against police brutality.
LVMH board members are also reportedly concerned about Tiffany & Co’s ability to cover its debt covenants at the end of the transaction, which was expected to be concluded mid-year.
READ MORE:
- Louis Vuitton owner LVMH blames sales decline on Covid-19 chaos
- LVMH takeover of Tiffany approved “overwhelmingly” by investors
- LVMH buys Tiffany for €14.7bn
Tiffany and LVMH have not commented.
The news saw shares in Tiffany & Co decline nearly nine per cent after closing yesterday.
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.
Should it still go ahead, Tiffany & Co will be joining LVMH’s stable of jewellery brands such as Tag Heuer and Hublot.
LVMH is also the parent company of Louis Vuitton, Bulgari and Christian Dior.
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