LVMH to Tiffany - I do still love you but can we do a cheaper wedding?
Tiffany to LVMH - ok if we ditch the flowers we can save $400m but that's as low as I am prepared to go and I still love you as well!
So, it looks like the wedding will go ahead but now at $131.50 per Tiffany share and a total of $15.8bn down from the original price of $16.2bn.
It seems that rather than engage in litigation in the Delaware courts, pressure from investors on both sides has made the parties see sense and put the deal back on the table.
From a legal point of view it’s a shame as it would have been interesting to see the judgment of the Delaware court. However, for LVMH and Tiffany my view is that both sides get more out of doing the deal than not.
As mentioned in earlier posts Tiffany gets a cash injection and some serious strategic direction, LVMH gets increased presence in the US and a strengthening of its position in the luxury jewellery sector.
Let's see if this is a match made in heaven or hell?!
The largest deal in luxury is back on after New York jeweller Tiffany agreed to a slightly reduced offer from Paris-based LVMH.