Tiffany accuses LVMH of trying to “miss the allotted time” by opposing the expedited trial
The jeweler sues the fashion house to force him to finalize its $ 16 billion acquisition, but claims LVMH opposes a quick trial because it wants the November 24 deadline to be passed, after which it will not have to close the purchase.
In a statement released yesterday, Tiffany Chairman Roger Farah said: “If LVMH was confident in its legal position, it would have no reason to object to a fast-track trial schedule.
Time is wasting
The merger between Tiffany and LVMH derailed after the COVID-19 pandemic destroyed Tiffany’s financial results.
LVMH said profits and forecasts were “significantly lower than those of comparable brands in the LVMH group”. This too criticized Tiffany for paying a dividend when it generated losses. However, the jeweler returned to profitability with its August results.
But LVMH says it can’t close the deal anyway: it says it honors the French government’s request to postpone the merger until January due to concerns about potential US tariffs on French products.
Tiffany, however, said LVMH was also refusing to extend the deadline to complete the deal, thereby killing the acquisition. He’s asking the court to hold a fast-track trial before the Nov. 24 deadline, but LVMH says he wants it to be held in six or seven months. A judge has set a September 21 hearing date on the request for an expedited trial.
“LVMH’s opposition to our speed-up motion is the latest attempt to go over time to avoid fulfilling its obligations under the merger agreement,” Farah said in a statement.
He adds that the luxury goods company cannot simply “walk away from the deal or… lower its price just because it is now suffering from a case of buyer’s remorse.”
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