Tiffany sinks 14% premarket on LVMH deal delay

Wednesday, 09. September 2020 12:34

American luxury jewelry and specialty retailer’s stock Tiffany & Co. plunged more than 14% in the premarket trade on Wednesday after the company said it plans to sue French luxury conglomerate LVMH for intentionally delaying the process of takeover worth $16 billion.

According to the Financial Times, Tiffany said that LVMH stalled the EU regulatory process to avoid closing before a mandated deadline and threatened to walk away. On the other hand, LVMH stated it had been asked by Tiffany to "delay the closing of acquisition from November 24 to December 31."

Tiffany’s shares fell 14.01% premarket to $106 per share at 6:25 am ET, while the stocks of fashion conglomerate LVMH went down by 0.43% to €402.65 five minutes later.

Related Links: LVMH Moët Hennessy Louis Vuitton SETiffany & Co
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Breaking the News / TF