LVMH Says It Currently Can’t Buy Tiffany Shares in Open Market

(Bloomberg) -- LVMH, the French luxury giant that agreed in November to acquire Tiffany & Co., said it’s currently bound by an agreement not to buy the jeweler’s stock on the open market.

“In accordance with the agreement concluded with Tiffany in November 2019, LVMH is currently committed not to buy Tiffany shares,” the luxury giant said in a statement Monday.

After a coronavirus-driven slump, the jeweler’s shares have been trading well below the $135-a-share price LVMH agreed to pay in the deal. Bloomberg News reported last week that the French company is considering buying the jeweler’s stock for less on the open market.

LVMH has discussed the idea with Tiffany’s board, which could grant permission for the potential purchases to go ahead after earnings, people with knowledge of the matter said at the time. The French group hasn’t made a final decision on whether to proceed with selective market buying and is discussing possible legal hurdles to the idea, another person said last week.

©2020 Bloomberg L.P.