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LVMH, Tiffany agree on lower price in takeover deal, sources say

The new terms would mean a discount of $425 million, less than 3 percent of the initial deal price.

October 28, 2020 / 10:54 PM IST

US jeweler Tiffany & Co has agreed with LVMH to slightly lower the price of its acquisition by the French luxury goods group, in a move that could end a legal dispute between the two, two sources familiar with the matter said on Wednesday.

The sources said the two sides had agreed to lower the price of the $16 billion takeover to $131.5 per share from $135 per share, and that an announcement that the deal is therefore back on track could come on Thursday.

The new terms would mean a discount of $425 million, less than 3 percent of the initial deal price.

One of the sources said the new deal would require approval from Tiffany shareholders, which Tiffany expects should be straightforward.

The source added that there would be no restrictions on Tiffany’s ability to pay dividends until the deal closes.

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Tiffany and LVMH did not respond to requests for comment.

 
first published: Oct 28, 2020 10:53 pm

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