LVMH to counter sue Tiffany over troubled deal

Tiffany shares tumble as LVMH scraps the takeover deal September 2020

"The long preparation of this assignment demonstrates the dishonesty of Tiffany in its relations with LVMH", the company said on Thursday.

LVMH said it was preparing to file a lawsuit against United States jeweller Tiffany alleging that it has mismanaged the business during the Covid-19 crisis so significantly that it gave the world's largest luxury group no choice but to reconsider its $16.6bn takeover bid.

LVMH stated Thursday it was "amazed by the suit submitted by Tiffany", calling the action "absolutely unproven".

Tiffany said in its suit that the government's request to LVMH for a delay in the closing date had no basis in French law, and that the real goal was to renegotiate the merger price and "run out the clock".

LVMH has said it would sue Tiffany for its handling of the coronavirus pandemic and to refute accusations it was trying to deliberately bow out of the deal.

"The first-half results and its perspectives for 2020 are very disappointing, and significantly inferior to those of comparable brands of the LVMH Group during this period", it said.

LVMH also says that Tiffany paid out large dividends while making losses, which has affected its operations and organisation.

It thus "confirms that the necessary conditions for the conclusion of the acquisition of Tiffany are not fulfilled".

Tiffany's market value is now much less than when the deal was signed.

Meanwhile, as an inevitable repercussion of an LVMH move to cancel its acquisition deal for the USA jeweller, Tiffany & Co.

LVMH also rebutted Tiffany's allegations that it failed to seek antitrust approval for the deal in key jurisdictions such as the European Union.

Tiffany's lawsuit, which was filed on Wednesday in the USA state of DE, seeks to force LVMH to honour the original merger agreement and finalise...

Tiffany said in a filing today that the deal completion was still subject to approval from the European competition authorities and the Taiwan Fair Trade Commission. According to the company, it had a change until November 24 to pull out.