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As part of the litigation between the American jeweler Tiffany and the French group LVMH, the latter filed its conclusions against Tiffany in the Delaware court last night, Monday, September 28. The group alleges that the conditions not met in the acquisition of the jeweler were not met, and that the arguments presented by the opposing party were misleading. In the wake of the counter-suit by the world’s leading luxury goods company against Tiffany, LVMH’s share price remained stable at 405.90 euros on Tuesday morning on the Paris Bourse.
In November 2019, the luxury goods giant LVMH signed an agreement to acquire the American jeweler Tiffany for 16.2 billion dollars, or 13.8 billion euros. Certain uncertain events were excluded from the contract at the request of the jeweler in advance to secure the finalization of this agreement, such as the movement of the yellow jackets, the demonstrations in Hong Kong, or the cyber attacks, but in the end the health crisis will have gotten the better of the American jeweler.
The effects of the pandemic were catastrophic and long-lasting for Tiffany, which would be accused of a high payment of its dividend in the midst of the global crisis, while the brand was suffering significant losses. According to the LVMH Group, the reasons are sufficient in themselves to terminate this agreement, fulfilling one of the clauses of the contract, in the event of a significantly unfavorable situation.
“The group is confident in its ability to demonstrate that the conditions for completing the acquisition have not been met and that the false arguments supported by Tiffany are totally unfounded“, the luxury goods giant said in a statement on Tuesday morning.
And against all expectations, despite these various developments in the case, the share price of the luxury giant LVMH is still balanced on the Paris stock exchange, at 405.90 euros on the CAC 40 index.
The group of billionaire Bernard Arnault is said to have received a letter signed by Jean-Yves Le Drian, Minister of Europe and Foreign Affairs in France, who is already in a trade war with the United States, asking him to temporarily suspend this agreement and postpone it so as not to take further financial risks. The French group thus justifies this decision not to buy back the American jeweler at the request of the French government and in view of its poor management in times of global crisis.
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Roberto Cavalli’s CEO, Gian Giacomo Ferraris, will retire by the end of 2020.
Last year, the brand passed into the hands of DICO, the group owned by businessman Hussain Sajwani, who bought it from Clessidra for an unreported amount.
Gian Giacomo Ferraris himself announced his decision in a letter to the brand’s employees, in which he confesses to having “contrasting feelings, which give him some satisfaction, but also a little sadness and some regrets“.
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Roberto Cavalli’s CEO, Gian Giacomo Ferraris, will retire by the end of 2020.
Last year, the brand passed into the hands of DICO, the group owned by businessman Hussain Sajwani, who bought it from Clessidra for an unreported amount.
Gian Giacomo Ferraris himself announced his decision in a letter to the brand’s employees, in which he confesses to having “contrasting feelings, which give him some satisfaction, but also a little sadness and some regrets“.
[…][/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fabonnements-et-newsletter-2-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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