LVMH Will Not Buy Tiffany & Co. Shares on Open Stock Market
The $16.2bn USD deal still stands.
LVMH has squashed rumors that it would be purchasing Tiffany & Co. shares on the open stock market, following a report published by Bloomberg last week.
Bloomberg‘s report stated that LVMH would be looking to purchase the jewelry company at a lower price than its $16.2bn USD sale deal that was agreed back in November 2019. Doing so would mean that LVMH would capture an almost 13% discount on Tiffany & Co. amid its current situation regarding the coronavirus pandemic, which has lead to the jeweler closing several stores including its Fifth Avenue store in New York.
Despite the speculation, LVMH has published a statement saying, “Rumors circulated recently indicating that LVMH would consider buying Tiffany shares on the open market… These rumors lead LVMH to recall that, in accordance with the agreement concluded with Tiffany in November 2019, LVMH is currently committed not to buy Tiffany shares.” In November, LVMH’s sale saw Tiffany & Co. value itself a $135 USD per share. This decreased to $125 USD as of March 20.
Elsewhere in the world of business, it has been announced that Prada will be producing medical masks and overalls for healthcare workers in light of the current pandemic.
