Tiffany & Co. recovers from the pandemic and economic consequences as luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE tries to abandon the acquisition of the jewelry chain for 16.2 billion dollars.
Global net sales have fallen just a year ago in the last two months, and profits based on 201
At the end of September, the company’s cash balance exceeded $ 1 billion – and the outlook for the end of the year will be approximately $ 900 million.
“Although we still expect year-round results to be significantly affected by COVID-19, we are very pleased with the way business has recovered since the first quarter and continues to recover in the third quarter, especially in mainland China, and has recovered in the United States, “said CEO Alessandro Bogliolo.
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Tiffany tried to coerce, through a $ 16 billion deal that LVMH agreed to last Tuesday, with a counterclaim in which the French group’s motives for renewing the deal were “legally and factually unfounded.”
Tiffany also accused LVMH CEO Bernard Arnault of using “all the means and opportunities at his disposal to ensure that LVMH pays the lowest possible price for the assets it wants.”
In late September, LMVH blamed Tiffany for mismanaging his business during the pandemic. He noted that the jewelry chain pays the highest possible dividends while the company “burns money and reports losses.”
“No other luxury company in the world has done this during this crisis,” the LVMH statement said. He noted other examples of what he called mismanagement when filing, including reducing capital and marketing investments and taking on additional debt.
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Tiffany responded to what she called “unfounded and misleading counterclaims” filed by LVMH. He claims that this is another “rough attempt” to avoid his contractual obligation to pay the agreed price for Tiffany.
“Tiffany is acting in full compliance with the merger agreement and we are confident that the court will agree during the trial and will require concrete enforcement by LVMH,” Tiffany President Roger Farah said in a statement. “If LVMH really believed the allegations made in his complaint, there would be no need for LVMH to obtain the letter from the French Foreign Minister as an excuse for refusing to close it.”