... [+]Tiffany’s answer comes as part of a spat between the two luxury giants that has spanned the length of the pandemic. Tiffany has hit back at LVMH in its second volley of arguments since first filing a lawsuit against LVMH in September. Tiffany, growing in confidence having now seen what it believes to be LVMH’s hand, believes it can still push through the $16 billion deal to sell to LVMH that it agreed to in November without having to renegotiate the price.
On Tuesday Tiffany addressed the main claim by LVMH that the deal should not close because a specific Material Adverse Effect has occurred, broadly understood as an unlikely event or change in circumstances that slashes the value of a company. LVMH is resting hope in its claim that Tiffany did not specifically mention the prospect of a pandemic in a detailed list of these catastrophic events, the consequences of which LVMH would have to bear.
LVMH argued in its countersuit last week that if specific carve-outs for “Hong Kong protests,” the “‘Yellow Vest’ movement” and “terrorism” were included, then a pandemic should also have been included. On this point Tiffany now claims, “a pandemic carve-out never came up in the negotiations,” adding, “LVMH’s case is doomed, and LVMH knows it.” Claiming the French group“need not anticipate every conceivable cause of an industry-wide decline and specifically identify each of those causes in the MAE definition.” Adding that if the MAE became a long list of catastrophic events and worst-case scenarios, the definitions “would go on for pages, and the broad exclusions would be rendered meaningless.
Attaching an email from LVMH real estate manager Matthew Burke from the 18 March announcing the closure of LVMH stores across the U.S. and Canada, Tiffany claims “LVMH also fails to mention that it closed its stores in the United States at exactly the same time that Tiffany did, presumably due to a similar concern for the wellbeing of LVMH’s employees and customers.”: “We look forward to the opportunity to lay out the facts in the trial early next year and are confident we will prevail.
Tiffany should not merge with Louis V. If your products were more affordable you wouldn’t need financial assistance. Times have changed. Middle class Negroes like fine jewelry too. Cut the Bullshit and go for the money.
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