According to Reuters, the two sides have agreed to lower the price of the USD 16 billion takeover to USD 131.5 per share from the previous USD 135.
The new terms mean a discount of USD 425 million for LVMH, less than 3% of the initial deal price.
Reuters informs that according to one of the sources, the new deal is likely to close in January, assuming it gains approval from Tiffany shareholders. Another source informs that under the new agreement there would be no restrictions on Tiffany’s ability to pay dividends until the deal closes.
The initial deal faced issues in September 2020 when the French group informed it could no longer complete the transaction by the 24 November 2020 deadline.
It cited a French political intervention asking it to delay the completion of the acquisition until 6 January 2021 due to the threat of new US tariffs on French products, as well as the jewelry retailer’s poor performance during the COVID-19 crisis.
The two companies have been facing off in a Delaware court, with Tiffany seeking to make LVMH honour the original deal. The case is scheduled to be heard in early January 2021.
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