LVMH has responded to reports that its multi-billion dollar takeover of Tiffany & Co may be off the table.
In a short statement, the luxury group confirmed the board had met in Paris to discuss the impact of the coronavirus crisis on the US economy, and in turn, its £12.5bn deal to purchase Tiffany.
The statement says: “The Board of Directors of LVMH Moët Hennessy Louis Vuitton, met on Tuesday, June 2 2020 and notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co with respect to the agreement that links the two groups.
LVMH gave no further details, beyond specifying that it would not seek to buy shares in the US jewellery brand on the open market, which could have been one way to takeover Tiffany at a lower price.
The statement continues: “Considering the recent market rumours, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market.”
The deal at present, which was negotiated and confirmed earlier this year, is that LVMH will acquire Tiffany & Co for $135 per share in cash.