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Tiffany Says LVMH Can’t Blame French Government for Nixing Deal

Tiffany Says LVMH Can’t Blame French Government for Nixing Deal

LVMH can’t rely on a letter from the French government requesting a delay of its $16 billion purchase of Tiffany & Co. to justify its decision to pull out of the deal, the U.S. jewelry retailer said in a court filing.

The letter from French Foreign Minister Jean-Yves Le Drian seeking a delay as part of a trade dispute with the U.S. doesn’t amount to a “legal restraint” under the acquisition agreement, Tiffany said in a Delaware Chancery Court filing made public Monday.

“LVMH nowhere contends that the Foreign Minister has any jurisdiction over the transaction,” because they know European Union regulators handle antitrust reviews and Le Drian can’t stop the deal, the U.S. luxury jewelry chain contends in the filing.

Jonathan Doorley, a U.S.-based spokesman for the maker of Louis Vuitton bags and shoes, declined to comment on the filing.

The deal was announced last November, but friction between LVMH and Tiffany emerged in March as the depth of the economic fallout from the pandemic became apparent. LVMH earlier this month cited Le Drian’s letter in seeking to cancel the purchase and later also lambasted New York-based Tiffany’s response to Covid-19.

Tiffany sued to force LVMH to go forward with the acquisition, saying in a court filing that LVMH is trying to use the luxury downturn from the pandemic to negotiate a lower deal price.

A judge will hear arguments later today on Tiffany’s request to fast-track its suit. The deal has a Nov. 24 closing deadline, and Tiffany is hoping the judge will rule on whether LVMH must proceed with the deal by that date.

The case is Tiffany & Co. v. LVMH Moet-Hennessy-Louis Vuitton SE, 2020-0768, Delaware Chancery Court (Dover).

©2020 Bloomberg L.P.