The luxury leader was to buy the American jeweler in November for 16.2 billion dollars. Containment has been there. The French government got involved. The two ex-future married will meet in court.
Nothing is going well between Tiffany and LVMH. The biggest wedding in the luxury industry is yet to be consummated as the two sides are already tearing each other apart. On the one hand, the group of Bernard Arnault withdraws its offer to purchase, sealed in November 2019, advancing diplomatic reasons. On the other hand, the American jeweler, in the role of the grieving fiancée, is suing him in court, declaring that he does not believe in the diplomatic and commercial reasons advanced by LVMH.
The cashmere wolf
In November 2019, the world leader in the luxury industry therefore submitted its acquisition offer of 16.2 billion dollars (14.7 billion euros), thus creating a “American icon” of luxury, founded by Charles Lewis Tiffany in 1837, and which “Would fit perfectly into the LVMH brand portfolio”, remind him Financial Times.
The suspension of the offer puts “End to months of maneuver by Bernard Arnault, nicknamed ‘the cashmere wolf’ for his high-level negotiation tactics”, who sought to re-discuss the terms of the agreement at $ 135 per share (a 37% bonus over its stock market price at that time). The Covid-19 had been there, for luxury as for the rest of the economy.
The case is emblematic of “The way in which the transactions agreed upon before the pandemic went wrong in