LVMH is reportedly looking for ways to pressure Tiffany to lower the agreed-upon acquisition price from $135 per share.
“I would imagine it is normal that LVMH internally discusses the proposed Tiffany acquisition -given the size of the deal, the Covid-19 situation and the recent social unrest in the U.S. Having said that, the Tiffany takeover would provide a unique strategic opportunity to LVMH, boosting its position in branded jewelry.”
Luca Solca, analyst at Sanford C. Bernstein
While the acquisition still has its merits, many no longer feel confident in the pre-crisis valuation of $16B for Tiffany.