A day after Tiffany & Co. had sued the Louis Vuitton owner LVMH due to its cancellation of a $14.5 billion buyout deal following request from French Govt. to delay the process, the Paris-headquartered French luxury goods’ conglomerate LVMH said on Thursday that the group would counter-sue the Tiffany & Co., accusing the New York City luxury jeweller of mass-scale mismanagement during the pandemic crisis.
In point of fact, on Wednesday, LVMH had cancelled its buyout deal for Tiffany & Co. citing French Government’s request to delay the process as the Government has been re-evaluating the impacts of added US tariffs on French goods, however, Tiffany & Co.
had sued the French luxury goods’ group over allegations of trying to bow out of the $14.5 billion acquisition deal reached on November last year adding that the French Government’s request could not have meant a drawdown of the takeover process.
Tiffany files lawsuit against LVMH in Delaware as LVMH vows to defend itself
Aside from that, latest move from LVMH to sway away from the takeover deal for Tiffany & Co. comes over the heels of a growing number of criticisms on whether the Paris-based luxury goods’ company had been overpaying the US-based jeweller amid a wide-spread slowdown in luxury goods’ sector due to a resurgence in the pandemic cases across the globe.
However, in a bid to enforce the French luxury goods conglomerate to complete the deal as agreed last year, Tiffany had filed a lawsuit late on Wednesday in a Delaware court, while the Luis Vuitton owner LVMH, led by the billionaire entrepreneur Bernard Arnault, said in a statement on Thursday that it would also lodge a lawsuit in a federal court in Delaware adding that the group would encounter the way Tiffany & Co.
had managed its businesses during the pandemic outbreak. In tandem, adding that the French group would defend itself vigorously against Tiffany & Co.’s claim to complete the deal as agreed last year, before the onset of the pandemic outbreak, LVMH said in a statement, “LVMH was surprised by the lawsuit filed by Tiffany against the group. ”