LVMH vs Tiffany: Deal or No Deal?

Simone Rocha's New Abnormal [View on Web]( [Add to contacts]( [New reader? Subscribe]( [BoF]( THE DAILY DIGEST ADVERTISEMENT [Who's Next | DDNL | Sep 21-22, 2020]( THE UPFRONT Dear BoF Community, LVMH’s acquisition of the American jeweller Tiffany was set to be the biggest deal in the history of the luxury sector. Then came the pandemic, sending Tiffany’s stock significantly below the previously agreed $135 per share price. LVMH has since walked away from the transaction in what has been widely interpreted as a hard-ball tactic for negotiating a lower price, prompting Tiffany to sue the French conglomerate and setting the stage for what could be the biggest luxury M&A battle of all time. Will the deal ultimately go through? Transatlantic tag team Lauren Sherman and Robert Williams lay out [five scenarios for how the LVMH-Tiffany saga could end](. Elsewhere, [Tim Blanks sits down with London standout Simone Rocha](. Vikram Alexei Kansara, Editorial Director TODAY'S MUST READ [Intelligence]( [LVMH vs Tiffany: Deal or No Deal?]( BY Lauren Sherman and Robert Williams [The largest acquisition in the history of the luxury goods sector is collapsing, setting up what could be the biggest luxury M&A battle of all time. BoF lays out five possible outcomes.]( NEW YORK and PARIS — On Monday, September 21, a Delaware court will hear Tiffany & Co.'s case to force French luxury group LVMH and its Chairman and Chief Executive, Bernard Arnault, to move ahead with its $16.2 billion acquisition of the historic American jeweller, agreed upon in November 2020, just months before Covid-19 shuttered stores and pushed the profitability of luxury and fashion companies off a cliff. After months of insisting it would honour the deal, LVMH has walked away and finds itself facing-off against Tiffany in court. The French group claims it can't pursue the deal due to a French government request amid trade turmoil with the United States, while Tiffany claims the attempt to back out of the agreement is a means to negotiate a lower price. “The deal still makes sense strategically, but for Mr. Arnault, it's also important to act and be seen as a smart buyer,” said Mario Ortelli, a luxury consultant. “When you play hardball, as Arnault has shown in the past he’s willing to do, sometimes you have to make believe you’re really walking away.” Whether the deal is consummated at the original price, renegotiated or falls apart definitively will depend on several factors. What's the standard for managing a company "according to the ordinary course" during an unprecedented pandemic? Is Tiffany ready to go up against LVMH in litigation? And most importantly, how badly does Arnault want the asset? BoF lays out five possible outcomes. Read More. Try BoF Professional for 30 days for $1/£1 [JOIN]( TOP STORIES [Tim's Take]( [Simone Rocha Reflects on Her 10th Year in Business]( BY Tim Blanks [BoF Editor-at-Large Tim Blanks connects with the designer to discuss her Spring/Summer 2021 collection — and how the pandemic changed her creative process.]( Try BoF Professional for 30 days for $1/£1 [JOIN]( [Intelligence]( [How to Sell to College Students When Campus Is Closed]( BY Chavie Lieber [Brands like Aerie and VS Pink relied on in-person student events and campus ambassadors to drive sales. Can they replicate that success online?]( Try BoF Professional for 30 days for $1/£1 [JOIN]( [IN OTHER NEWS]( [TikTok Owner Seeking $60 Billion Valuation in US Deal]( [DAILY DIGEST Fashion News from Around the Web]( 1 [Shopping for Second-Hand Luxury Amid a Pandemic]( [CNBC]( 2 [On Racism and British Fashion]( [THE NEW YORK TIMES]( 3 [Why 'Vote' Is the Fashion Slogan of the Season]( [THE GUARDIAN]( 4 [Shopping for Fashion, Six Months On]( [THE NEW YORK TIMES]( 5 [Trump Banned TikTok and WeChat — What Now?]( [QUARTZ]( BoF CAREERS - FEATURED JOBS  [Directeur E-commerce - Alaïa]( [R](    Paris, France  [Wholesale Assistant Intern]( [J]( Anderson](   London, United Kingdom  [Category Manager, HODINKEE Shop]( [Hodinkee](  New York, United States [View All Jobs](  [Subscribe Were you forwarded this email? To subscribe to this newsletter, click below.]( for Free]( Follow Us [The Business of Fashion]( [Sponsorship & Advertising]( [About]( This email was sent to {EMAIL} [Add to Address Book]( | [Unsubscribe]( | [Edit Newsletter Subscriptions]( The Business of Fashion Moray House - 6th Floor · 23-31 Great Titchfield St London W1W 7PA · United Kingdom