LVMH FILES COUNTERSUIT VS TIFFANY OVER SPURED $16.2B DEAL
Luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE has filed a countersuit against Tiffany over their ruined merger deal, noting conditions necessary to close the $16.2 billion acquisition of the jewelry chain have not been met, Anne D’Innocenzio reported for the Associated Press (AP).
It also noted in a statement that the “spurious arguments put forward by Tiffany are completely unfounded.” The lawsuit, filed late Monday in Delaware Chancery Court, is the latest legal spat between the two companies over what would have been the the biggest deal in the luxury market. It follows a lawsuit that Tiffany filed earlier this month against LVMH after the French conglomerate—owner of Louis Vuitton, Dior among other brands—said it was pulling out of the pact. It had cited that the French government had requested a delay to assess the threat of proposed US tariffs.
In a lawsuit filed earlier in September to enforce the merger agreement, Tiffany said LVMH’s argument had no basis in French law. Tiffany also said that LVMH hasn’t even attempted to seek the required antitrust approval from three jurisdictions. LVMH’s pullback also came after the deal’s value had been eroded by wider industry troubles caused by the coronavirus pandemic.
In a statement Tuesday, LMVH blamed Tiffany’s mismanagement of its business during the pandemic. It noted that the jewelry chain paid the highest possible dividends while the company was “burning cash and reporting losses.”
The Financial District would like to learn more from its audience. Can you please give us feedback on this article you just read. Click Here to participate in our online survey.