LVMH confirms it is not considering buying Tiffany & Co shares on the market
Jun 4, 2020
French luxury conglomerate LVMH has confirmed that it is not planning to buy shares in US jewellery brand Tiffany & Co on the open market.
What that means for the luxury group’s planned 16.2 billion acquisition of Tiffany is yet unclear.
LVMH, which owns luxury brands Louis Vuitton, Christian Dior and Marc Jacobs, said its board of directors met on Tuesday to discuss the development of the Covid-19 and its potential impact on the deal.
“Considering the recent market rumors, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market,” the group said in a statement.
It gave no further details.
LVMH not planning on buying Tiffany shares on open market
LVMH first confirmed rumours it was looking to buy Tiffany back in October when it said it had held preliminary talks with the company.
The deal, reported by Bloomberg, valued the company at around 14.5 billion dollars at the time.
But reports surfaced this week that LVMH was rethinking the deal following months of industry-wide poor trading caused by the Covid-19 pandemic.
On Tuesday, following those reports, the trading of Tiffany's shares was temporarily halted due to volatility as shares plummeted by 13 percent - the most in a day since 2015 - before closing at 8.9 percent.
The US has been one of the hardest-hit countries in the world by the pandemic, counting the highest number of cases and attracting widespread criticism over its early lockdown easing.
Now, on top of that, country-wide protests over the killing of African American George Floyd while being arrested by police officers in Minneapolis have raised even more uncertainty as to how quickly the US economy can recover.
Editor's Note: This article has been updated after publication. The title has been altered to reflect the factual news. The correct title is: LVMH confirms it is not considering buying Tiffany & Co shares on the market
Photo credit: Tiffany & Co, Facebook