LVMH and Tiffany agree on lower price for $16 billion takeover

In this news, we discuss the LVMH and Tiffany agree on lower price for $16 billion takeover.

PARIS (Reuters) – American jeweler Tiffany & Co TIF.N has agreed with LVMH LVMH.PA to slightly lower the price of its acquisition by the French luxury goods group, ending a bitter legal dispute between the two, have companies announced Thursday.

The new repurchase price was set at $ 131.5 per share versus $ 135 in the original agreement, the companies said in a statement, bringing the total price to about $ 15.8 billion.

They added that other key terms of the agreement reached last November remain unchanged.

“Tiffany and LVMH have also agreed to settle their pending litigation before the Delaware Chancery Court,” the statement read.

The new award means a discount of $ 425 million for LVMH, led by billionaire businessman Bernard Arnault.

The transaction, which has already been approved by antitrust regulators, is expected to close in early 2021, subject to Tiffany shareholder approval.

Under the revised deal, Tiffany will pay its regular quarterly dividend of $ 0.58 per share on November 19.

“We are more convinced than ever of the tremendous potential of the Tiffany brand and believe that LVMH is the ideal place for Tiffany and its employees during this exciting next chapter,” Arnault said in the statement.

Reporting by Silvia Aloisi; Editing by Sarah White and David Goodman

Original © Thomson Reuters

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