A small discount and the deal between LVMH and Tiffany could go through. The two parties would be “indirectly” negotiating a new agreement at a slightly lower price than the one agreed on a year ago. While the judicial implications of the affair remain on the table, the EU Antitrust Commission has given the green light to the agreement.
A small discount
LVMH allegedly convinced Tiffany to sit down to renegotiate the deal. However, the US jewellery brand would not be willing to concede much. On the contrary, it would like guarantees that the French will not hold back, as has already happened. The emissaries of the two sides would be negotiating on the final price. According to Reuters, trading is based on a price between 131 and 134 dollars per Tiffany share, compared to the price of 135 dollars set a year ago.
Maybe even more
According to CNBC, the discount would be greater, as the price range would range from130 to 133 dollars per share. In this way, LVMH would achieve its goal: to acquire Tiffany by spending less than the 16.2 billion dollars agreed on a year ago. In the case of a deal at 130 dollars per share, the savings could be as high as 600 million dollars. What advantage would there be for Tiffany? It would avoid legal fees, as well as the related risks, of the dispute filed in the Deleware Court.