PARIS, France – LVMH's deal to acquire jeweller Tiffany is back on at a reduced price, the companies said in a joint statement, confirming reports Tuesday by The Financial Times and others.
Tiffany's board has approved a new price of $131.50 per share, with the deal now set to close early next year, pending shareholder and regulatory approvals. That would represent savings of roughly $425 million on the original price of $16.2 billion agreed before the coronavirus pandemic hit.
The new deal allows the French conglomerate and its chairman, Bernard Arnault, to preserve their reputation as savvy buyers. It also spares both companies a prolonged legal battle that kicked off when Tiffany sued LVMH in a Delaware court to force it to close the deal at the original price. LVMH counter-sued Tiffany over alleged mismanagement during the pandemic in an apparent bid to get out of the deal.
Tiffany's board "concluded it was in the best interests of all of our stakeholders to achieve certainty of closing," Chairman Roger Farah said in the statement.
Arnault called the news a "balanced agreement."
"We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees during this exciting next chapter," Arnault said.
The deal provides for Tiffany to pay its scheduled quarterly dividend of $0.58 per share in November.
Stay tuned for updates on this developing story.
Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders' documentation guaranteeing BoF's complete editorial independence.
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