We follow with interest the recent developments relating to LVMH’s currently abandoned $135 per share takeover of NYSE listed Tiffany & Co.
It appears the two companies are destined for a bloody court battle with Tiffany suing to force LVMH to complete on the terms of the merger agreement and LVMH submitting a counter suit alleging financial mismanagement by Tiffany during the Coronavirus pandemic and as a result, that it is now a different company than the one LVMH agreed to buy.
Will the wily wolf in the Cashmere Coat, Bernard Arnault succeed in convincing the courts or is this just a bluff to force a revised settlement and secure a better deal for LVMH?
One thing is for sure, Tiffany’s share price has diverged significantly from LVMH’s agreed offer price in recent weeks, providing opportunity for the brave arbitrageur.
Diamond or a ringer... as ever, time will tell.
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