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Source: istock, LVMH, Tiffany

LVMH and Tiffany Clash Escalates With a Countersuit

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Luxury giants Tiffany and LVMH haven't resolved their differences. Lawsuits could sink the landmark luxury industry takeover deal. After Tiffany dragged LVMH to court for changing its mind over the merger arrangement, LVMH hit back with a countersuit. 

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Source: istock

What is the LVMH-Tiffany lawsuit about?

The LVMH-Tiffany lawsuit centers on a merger fallout. in 2019, LVMH agreed to acquire Tiffany for $16 billion in what would have been the luxury industry’s largest merger deal. However, the deal faced challenges after LVMH changed its mind. 

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LVMH wants to walk away from the merger deal with Tiffany. The company cited several reasons for the decision. Tiffany breached their agreement, particularly in relation to dividend payout. Also, LVMH said that the French government won't close the Tiffany deal by the agreed date of November 24, 2020.

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Tiffany was the first to take LVMH to court over the merger dispute. The company hit LVMH with a lawsuit earlier in September to stop it from abandoning the merger deal. However, LVMH responded with a countersuit. The fallout continues to grow between the luxury giants. The companies will face each other in court as they try to defend their positions. 

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What is Tiffany's stock price today?

At one point, Tiffany stock fell 0.17 percent to $116.50 in pre-market trading on Tuesday, Sept. 29. Later, the stock reversed course and rose nearly 0.10 percent to $116.80 before the opening bell. The stock jumped 0.91 percent on Sept. 28 and closed at $116.70. 

Tiffany is down about 13 percent in 2020. The most bullish analyst sees a 16 percent upside in Tiffany stock to $135 within 12 months. Even the most bearish analyst, with a $119 target price, sees some upside in the stock.

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Source: istock

What is LVMH's stock price today?

LVMH stock is listed in stock exchanges in France and other European countries. In the U.S., LVMH stock trades over the counter. The over-the-counter LVMH stock gained 0.42 percent on Sept. 28 and closed at $94.34.

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What is LVMH CEO Bernard Arnault’s net worth?

LVMH is the world’s largest luxury goods company. Bernard Arnault, LVMH's CEO and chairman, is the richest person in Europe. Currently, Arnault’s net worth is $84 billion. The French billionaire’s fortune has dropped more than $21 billion in 2020. 

In contrast, Amazon CEO Jeff Bezos's fortune increased by more than $72 billion, which drove his net worth to $187 billion and cemented his ranking as the world’s richest person. Recently, Bezos became the first person to top $200 billion in net worth. At some point in January, Arnault passed Bezos and was ranked as the world’s richest person.

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