After a long and controversial process, the proposed takeover of Tiffany (NYSE: TIF) by European luxury retailer LVMH Must Hennessy Louis Vuitton (OTC: LVMUY) has been approved by Tiffany shareholders, reports Reuters.
More than 99% of the voting shareholders approved the $ 15.8 billion agreement, which will bring a modified price of $ 131.50 per share to the holders of Tiffany shares.
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The original deal was for a $ 16.2 billion deal at $ 135 a share. It was in the fall of 2019, and the pandemic threw a big key in the process. In its fiscal first quarter, Tiffany reported a global net sales decline of 45% to April 30, 2020.
The merger agreement allowed the closing date to be extended to 24 November 2020 if the approval of antitrust phase was the only obstacle on August. Tiffany chose to extend the date, as LVMH had not even applied for antitrust clearance in three required jurisdictions on August 24th.
Tiffany accused LVMH of dragging his feet to pass deadlines. The dispute ended up in court with a lawsuit and counterclaim. At the end of October, the parties agreed to change the selling price to $ 131.50 per share and to settle the pending lawsuit.
Roger Farah, chairman of Tiffany, said at the time: “We are very pleased that we have reached an agreement with LVMH at an attractive price and can now proceed with the merger.” Shareholders have now officially agreed and brought the Tiffany brand under the luxury umbrella LVMH.