THE WHAT? LVMH has confirmed it won’t buy Tiffany shares on the open market and will instead honor the terms of its takeover agreement implemented last year.
THE DETAILS The French luxury giant agreed to acquire Tiffany for $135 per share, or $16.2 billion, in November 2019.
THE WHY? LVMH has rebuked recent press rumours that the luxury company was set to take advantage of the sharp fall in share prices during the COVID-19 pandemic, which has caused global markets to fall.
Taking to a statement, LVMH said, “Rumors circulated recently indicating that LVMH would consider buying Tiffany shares on the open market. These rumors 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.”