Tiffany shareholders approved the updated agreement for LVMH … According to estimates by Boston Consulting Group, global luxury sales are set to contract 25 percent to 45 percent in 2020, with a slow recovery that could take up to three years. By becoming a privately held company, the jeweler would also be able to focus on long-term brand building rather than short-term profits and shareholders. The holiday blessing that Tiffany & Co. shareholders gave to sell the storied jeweler to LVMH pushes the contentious transaction closer to the finish line, giving billionaire Bernard Arnault the long-sought pathway to expand his global collection of luxury brands. In a call with reporters, LVMH’s chief financial officer, Jean Jacques Guiony, balked at a question about whether LVMH had solicited help from the French government to exit the deal. Tiffany decided to sue LVMH over frustration that nine months after the agreement, the conglomerate had not yet filed for antitrust approval in the European Union, a person familiar with the deal said. It would potentially double the size and profitability of its portfolio in that category, which includes brands like Bulgari, Chaumet, Hublot and Tag Heuer, and accounts for roughly 9 percent of total LVMH sales. A company vaccinating Ohio nursing-home residents lets 890 doses go bad. Tiffany & Co. and LVMH Moët Hennessy Louis Vuitton have made their new deal official. Tiffany shareholders voted overwhelmingly to support the deal at a virtual meeting, according to LVMH. Initially LVMH said it wouldn't try to buy Tiffany at less than the original offer price, $135 per share (or $16 billion). Tiffany will be dropped from the Standard & Poor’s 500 Index now that the deal has been approved, S&P Dow Jones Indices said late Wednesday in New York, with the jeweler replaced by Enphase Energy Inc. Tiffany shareholders voted overwhelmingly to support the deal at a virtual meeting, according to LVMH. LVMH’s chief executive, Bernard Arnault, said that Tiffany would “thrive for centuries to come” as part of his portfolio of premium brands, which includes Louis Vuitton, Dior and Givenchy. LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods company, said on Monday that it had reached an agreement to buy the jeweler Tiffany & … Tiffany & Co shareholders have voted to approve a $15.8 billion (£11.6 billion) takeover from French luxury fashion giant LVMH after a lengthy courtship. LVMH Clinches Tiffany at Small Discount and a Lot of Bad Blood. “Are you seriously suggesting that we procure the letter?” he asked. The two companies announced in October that they’d reached an agreement, whereby LVMH would buy Tiffany for $131.50 a share, down from … Tiffany shares were little changed at $131.35 Wednesday in New York and are down about 1.7% in a tumultuous year for any retailer -- let alone one trying to keep a merger intact. That was before the pandemic caused demand for luxury goods to plummet, with lockdowns prompting widespread shutting of boutiques and department stores and a flatlining of international travel. LVMH Moët Hennessy Louis Vuitton SE (“LVMH”), the world’s leading luxury group and Tiffany & Co. (NYSE: TIF) (“Tiffany”), the global luxury jeweler, today announced that the companies have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion. Tiffany had accused LVMH of having “unclean hands” when the French side initially abandoned the deal. According to the agreement announced on November 25, 2019, LVMH will acquire Tiffany, the global luxury jeweler, for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion. Tiffany’s global net sales fell 29 percent in the quarter that ended July 31, though that was a considerable improvement from a 45 percent drop reported the previous period. In May, the sale of the lingerie brand Victoria’s Secret to the private equity firm Sycamore Partners fell apart. In turn, Tiffany sued the luxury giant in an effort to force the deal through. That prompted a lawsuit by Tiffany and some harsh words from both sides, and the companies eventually agreed to see the deal through at a slightly reduced price. But he later added: “It was fully unsolicited. Paris-based LVMH "has held preliminary discussions'' to acquire Tiffany & Co. The transaction, worth more than $16 billion, was set to be the largest ever in the luxury sector. Before it's here, it's on the Bloomberg Terminal. The battle brewing between two of the biggest names in global luxury is one the most prominent examples of the fracturing of deals agreed to before the pandemic devastated retailers. Besides Louis Vuitton handbags, the LVMH conglomerate includes Loro Piana cashmere, Bulgari jewelery and Dior haute-couture, among many others. LVMH … Jack Ma Emerges for First Time Since Ant, Alibaba Crackdown, What to Know About Vaccine-Linked Deaths, Allergies, Robinhood Couple in Viral TikTok Discover Momentum Trading, Norway Moves to Calm Vaccine Anxiety After Elderly Deaths, South African Study Into Virus Strain Raises Vaccine Fears. Beyond potential reworks to Tiffany & Co.’s own line of in-house watches, it LVMH, which had coveted the jeweler for years, was persuaded to raise its offer several times; approval was finally given to a $135-per-share offer, translating to an equity value of around $16.2 billion. “And because we don’t know who the president is going to be in January 2021, that adds fuel to the uncertainty.”. Some analysts noted it as a top-of-the-market price. The parent of Louis Vuitton had agreed to buy the iconic jeweler before trying to back out of the deal when the coronavirus pandemic upended the retail world. In May, LVMH’s most senior management began cutting off all informal discussions with senior Tiffany personnel, the suit claimed, while in early June, LVMH wrote to Tiffany, citing “the pandemic and the current protests and civil unrest in many cities” as among its concerns in the deal. Tiffany confirmed Monday in a statement that it is reviewing an all-cash proposal from LVMH to buy the company for $120 per share. 3 weeks Tiffany Shareholders’ Approval of Sale to LVMH Caps Lengthy Saga Financial Post (Bloomberg) — The holiday blessing that Tiffany & Co. shareholders gave to sell the storied jeweler to LVMH pushes the contentious transaction closer to the finish line, giving billionaire Bernard Arnault the long-sought pathway to expand his global collection of luxury brands. LVMH Acquires Tiffany & Co. For $16.2 Billion Roberta Naas Senior Contributor Nine months later, the agreement is in tatters. LVMH CEO Bernard Arnault has been in talks with his advisers this week to identify ways to pressure Tiffany to lower the agreed price of $135 per share in … Few jewelers can claim as much of a hold on American culture as Tiffany, with its well-known blue boxes. Lately China has led a rebound in consumer demand, and Bain & Co. estimates that the personal luxury goods market may grow by as much as 19% next year. Tiffany’s global net sales fell 29 percent in the quarter that ended July 31. Tiffany’s lawsuit outlined the crumbling of the deal over the past six months. Tiffany Shareholders' Approval of LVMH Sale Caps Rocky Saga Back to video The vote was a key step in the yearlong saga over the luxury industry’s biggest takeover. Dec 30 (Reuters) - U.S. jeweler Tiffany & Co’s shareholders on Wednesday approved a $15.8 billion deal with France’s LVMH, ending an acrimonious … Tiffany shares surged higher in Frankfurt trading Monday after France's LVMH Group agreed to buy the U.S. jeweler for $16.2 billion in the biggest-ever luxury goods takeover deal. France’s richest man has built his luxury empire on his take-no-prisoners negotiation tactics, offering few concessions and often cleaning house at freshly acquired assets to fit his needs. But that was pre-pandemic. LVMH said second quarter sales fell 38 percent on a like-for-like basis to 7.8 billion euros, or $9.2 billion, after a 17 percent decline in the first quarter. Michael J. de la Merced contributed reporting. Last November, LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods conglomerate, announced plans to acquire Tiffany & Company, the American jeweler founded by Charles Lewis Tiffany in 1837 and famed for its robin egg blue boxes and diamond engagement rings. On Wednesday, LVMH said that it was pulling out of the deal, citing a highly unusual request by the French government to delay the closing as well as the damage caused to the luxury industry by the pandemic. In a securities filing, Tiffany said that although LVMH had informed the jeweler that it had received a letter from the French government, the jeweler had not yet seen an original draft of that letter. Like others in the business, LVMH struggled with the fallout of the coronavirus pandemic. A new president takes office: the view from an I.C.U. By Lauren Hirsch and Elizabeth Paton Sept. 9, 2020 Last November, LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods conglomerate, announced plans to acquire Tiffany … Mr. Arnault, long considered the most aggressive and acquisitive deal maker in the industry, was already expanding beyond traditional soft luxury goods like clothing and leather goods. Harrods owner Qatar Investment Authority has gained $892 million (£648 million) when it sold shares in Tiffany & Co as part of LVMH’s $15.8 billion (£11.5 billion) acquisition of the US jeweller. The company invested in a face-lift for its landmark Fifth Avenue flagship store in New York and in greater expansion in China. LVMH in turn disparaged Tiffany for mismanagement of the business during the pandemic, while spending unwisely on dividends. The two companies announced in October that they’d reached an agreement, whereby LVMH would buy Tiffany for $131.50 a share, down from $135 originally promised. Now LVMH faces the challenge of integrating Tiffany. The takeover agreement in November had come after months of tense talks between the two sides. E-commerce sale were up 92 percent during the quarter. The vote was a key step in the yearlong saga over the luxury industry’s biggest takeover. Updates with LVMH statement in second paragraph, Ferrari Relies on U.S. as Italy Sales Slump, Netflix Hits Record After Subscribers Leap Past 200 Million, Atlanta Dream Is Close to Being Sold, Taking Kelly Loeffler Out of WNBA, China-Made Jeep Comments Spur Campaign Battle. Management changes may also be in store, since Arnault tends to put his own loyalists at the helm of new companies to tighten control. French conglomerate LVMH Moët Hennessy Louis Vuittonhad tried to back out of a deal to acquire iconic U.S. jeweler Tiffany. 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