// LVMH to renegotiate deal with Tiffany & Co
// The Louis Vuitton owner agreed to pay $135 a share for Tiffany in November 2019
// The deal broke down last month when LVMH said it was exiting the deal
LVMH is reportedly in talks to strike a cut-price deal to acquire US jeweller Tiffany & Co as the pair renegotiate the planned $16 billion (£12 billion) takeover.
The Louis Vuitton owner agreed to pay $135 a share for Tiffany & Co in November last year, but the deal broke down last month when it said it was exiting the deal – resulting in a legal battle.
In a successful attempt for Tiffany & Co to fast-track legal proceedings in the US after the French luxury group backflipped on its decision, a US court ruled to expedite the case that the jeweller has brought against LVMH
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LVMH, led by Bernard Arnault, blamed French political intervention and Tiffany & Co’s “dismal” performance during the Covid-19 pandemic for its decision to drop out of the deal.
The businesses are battling it out in a Delaware court, with Tiffany & Co seeking to force LVMH to renegotiate the deal.
Judge Joseph Slights, who is presiding over the case in Delaware, rejected LVMH’s arguments that the case was too complex to expedite, particularly during the Covid-19 pandemic.
Setting a four-day trial at the start of January, the judge said he was “not persuaded” by LVMH’s argument to “slow track” the legal fight.
Meanwhile, lawyers for Tiffany & Co argued in court that a protracted process could force it to rip up the existing terms of the deal, to the benefit of LVMH.
The case is due to be heard in early January.
However, Tiffany & Co has since said it is willing to consider a lower price from LVMH as long as it was above $130 a share, Financial Times reported.
Tiffany & Co and LVMH are now said to be in discussions regarding a revised deal.