Tiffany & Co. has filed a lawsuit in the US against LVMH Moët Hennessy-Louis Vuitton to enforce the $16.2 billion merger announced in November 2019. The announcement came after LVMH deferred the acquisition until 6th January, 2021, citing the threat of taxes on French products by the US.
Tiffany’s lawsuit seeks an order requiring LVMH to abide by its contractual obligation under the merger agreement to complete the transaction on the agreed terms. Tiffany not only makes clear that LVMH is in breach of its obligations relating to obtaining antitrust clearance, but also refutes LVMH’s suggestions that it can avoid completing the acquisition by claiming Tiffany has undergone a Material Adverse Effect or breached its obligations under the Merger Agreement, or that the transaction is in some way inconsistent with its patriotic duties as a French corporation.
Roger N. Farah, chairman of the board, Tiffany & Co., said, “We regret having to take this action but LVMH has left us no choice but to commence litigation to protect our company and our shareholders. Tiffany is confident it has complied with all of its obligations under the merger agreement and is committed to completing the transaction on the terms agreed to last year. Tiffany expects the same of LVMH.”
Tiffany Chief Executive Officer Alessandro Bogliolo said, “The fundamental strength of Tiffany’s business is clear. The company has already returned to profitability after just one quarter of losses, and we expect our earnings in the fourth quarter of 2020 will actually exceed the same period in 2019.”
Caption: Tiffany & Co. platinum diamond rings featuring emerald-cut diamonds weighing 20.12 carats and 35.63 carats.
Photo credit: Carlton Davis