Pop Culture

What’s Next in the Tiffany-LVMH Battle?

In November, LVMH and Tiffany announced that the conglomerate would acquire the jeweler for $16.2 billion. Originally billed as the largest-ever transaction in luxury goods, the deal fell apart in recent weeks after LVMH claimed that the French government asked it to delay the purchase following a trade dispute with the United States. Tiffany responded by suing, claiming that LVMH was trying to use the coronavirus pandemic to lower the price of the acquisition.

In a Delaware court filing on Monday, Bloomberg reported, the jeweler claimed that the letter from French Foreign Minister Jean-Yves Le Drian requesting the delay didn’t constitute legal grounds to undo the acquisition agreement. “LVMH nowhere contends that the Foreign Minister has any jurisdiction over the transaction,” the filing said.

Later in the day, the outlet reported that Delaware Chancery Court Judge Joseph Slights III set a trial for January 5, 2021, rejecting both LVMH’s request for a lengthy trial delay and Tiffany’s claim that LVMH must complete the deal by its November 24 closing date. 

Outside of the court filings, the battle between Tiffany and LVMH has largely played out over a series of public statements that, as the pandemic progressed, went from embraces to barbs. In a preview of Monday’s hearing, WWD rounded up some of the greatest hits.

“A globally recognized symbol of love, Tiffany will be an outstanding addition to our unique portfolio of luxury brands,” CEO Bernard Arnault said in February. “We look forward to welcoming Tiffany into the LVMH family.” In April, LVMH CFO Jean-Jacques Guiony said, “We will stick to the contract, full stop.”

But after LVMH’s course change in September, a different tone emerged. Tiffany said in its lawsuit, “At the direction of billionaire Bernard Arnault, one of the richest persons in the world, LVMH is trying to take advantage of the pandemic and recent social-justice protests in the U.S. to strong-arm Tiffany into agreeing to a reduced merger price.” Guiony said the following day, “To be frank, we were not entirely happy with the way [Tiffany] has been managed and performed over the last few months.”

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