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TIF - Tiffany & Co


Cigarbutt

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Keep updating...

 

 

https://www.reuters.com/article/businessNews/idUSKBN27B2MP

 

Tiffany-LVMH deal clears regulatory hurdles with EU nod

 

 

Tiffany & Co has received all regulatory approvals needed for the completion of its $16 billion acquisition by French luxury goods group LVMH, the U.S. jeweler said on Monday after it received a nod from the European Commission.

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The sources told Reuters the two sides had agreed to lower the price of the $16 billion takeover to $131.5 per share from $135 per share, and that an announcement that the deal is therefore back on track could come on Thursday.

 

The new terms would mean a discount of $425 million, less than 3% of the initial deal price.

 

https://www.reuters.com/article/us-tiffany-m-a-lvmh/lvmh-tiffany-agree-on-lower-price-in-takeover-deal-sources-idUSKBN27D2F9

 

 

Bernard Arnault strikes again and saved $400 million!

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Well done here. Great read.

 

+1, great job given2invest on laying out the thesis in your video.  It was very persuasive and I had penciled in 132, so 131.50 sounds pretty good to me.  nice place to park leading up to an election.  Good analysis, well communicated.

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Well done here. Great read.

 

+1, great job given2invest on laying out the thesis in your video.  It was very persuasive and I had penciled in 132, so 131.50 sounds pretty good to me.  nice place to park leading up to an election.  Good analysis, well communicated.

 

thanks much.  very pleased with the outcome.

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  • 2 months later...

Sort of a conclusion for a thread initiated last March.

Shareholders overwhelmingly approve at 131.50.

https://finance.yahoo.com/news/tiffany-shareholders-okay-lvmh-offer-150343705.html

 

In retrospect (trying to focus on process), it seems Mr. Arnault's strategy was to obtain a rebate of some kind. Recently named Manager of the Decade, it looks like he played on the relative mootness related to the doctrine of frustration (a variant of force majeure). But there were risks, even in retrospect. The doctrine of frustration came about with Edward VII's coronation in 1902. The king developed appendicitis and the coronation was postponed. Those who had paid, in contracts, for various observation sites, asked to have the contracts cancelled and it formed some kind of case law for those frustrated by unforeseen events. i would have thought that a global pandemic was part of the acquisition risks but Mr. Arnault did not make it to where he is by thinking conventionally. it remains to be seen if the acquisition will work out (integration, returns etc) but it was mostly financed with quasi-zero yield debt.

 

Based on outcome, process and disclosures here, it seems given2invest played the game very well.

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