LVMH denies it: it’s not planning on buying Tiffany’s stocks currently on the market. The French luxury group stated the former, to answer the indiscretions published by Bloomberg in the last few days.
LVMH denies it
“Rumours circulated recently indicating that LVMH would consider buying Tiffany shares on the open market,” the company said in a statement. “These rumours lead LVMH to recall that, in accordance with the agreement concluded with Tiffany in November 2019, LVMH is currently committed not to buy Tiffany shares”, said a not published yesterday, on Monday, March 23rd.
Throughout the last few days, Bloomberg published news saying that due to the Coronavirus and the loss of share prices, LVMH was allegedly considering renegotiating the purchasing agreement. Shortly put, instead of buying each share for 135 USD, the French group would have allegedly bought them on the market for a lower price. The stock price was of 126 USD at the closing of the NYSE last Friday, March 20th 2020. The plan B was categorically dismissed by the French group, which has stated it will respect the agreement signed, which is missing the last touches and will be completed before the end of June.