New York City's Tiffany shareholders back LVMH takeover, end long-drawn dispute

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New York City's Tiffany shareholders back LVMH takeover, end long-drawn dispute

On Wednesday, shareholders of New York City-based US jeweller Tiffany & Co. had voted to approve a $15.8 billion acquisition deal by the Louis Vuitton-owner French fashion industry behemoth LVMH, remarking an end to an embittered dispute between the luxury retailers that spanned more than a year.

In point of fact, at a virtually held special stakeholders’ meeting, over 99 per cent of Tiffany & Co. shareholders had voted in favour of a slightly downsized deal agreed on October this year, under the terms of which the French billionaire Bernard Arnault-led luxury fashion retailer, LVMH, would pay off $131.5 per share, down from an original $135 apiece agreed later last year.

Tiffany shareholders agree to LVMH takeover after year-long dispute

In actuality, LVMH had made an initial offer later last year, nonetheless, as luxury retail industry had succumbed into a pandemic-led clattering drawdown, the French fashion giant had backed out from the deal and urged for a lower pricing, while Tiffany stocks had also tumbled terribly, leading to an acrimonious legal dispute that stretched out up to September this year.

Nonetheless, as Tiffany had repeatedly said over the second half of the year that its sales had been picking up ahead of a holiday season in the United States alongside China, one of the largest markets for the New York City-based luxury jeweller, LVMH had agreed to renegotiate the price tag and both parties had reached a $15.8 billion accord, $425 million down from the original offer.

Concomitantly, followed by an approval of Tiffany shareholders, the deal, which had been delayed by an intervention of French politicians, but was cleared by the regulators later this year, is expected to close by early 2021.

Nonetheless, NYSE-listed shares’ prices of Tiffany & Co. had wrapped up the marginally higher following the announcement, while the Paris-listed shares’ prices of LVMH had been trading as much as 0.6 per cent higher to €516 per share in late-afternoon trading, but had winded down the day up by 0.05 per cent to €512.80 following a late-session profit-taking sell-off wave.