Tiffany & Co. recovers from the pandemic and economic consequences when luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE tries to reset the acquisition of the jewelry network by $ 16.2 billion.
World net sales for the last two months fell only slightly compared to a year ago, and profits in 2019 increased by about 25%.
At the end of September, the company’s cash balance exceeded $ 1 billion, and the forecast for the end of the year will be approximately $ 900 million.
“While we still expect COVID-19 to have a significant impact on the results for the full year, we are very pleased with how the business recovered after the first quarter and continues to recover in the third quarter, especially in mainland China, and recover in the United States.” said CEO Alessandro Bogliolo.
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Tiffany tried to reach a $ 16 billion deal, which LVMH agreed to last Tuesday, in a counterclaim, calling the French group’s motives for rejecting the deal “legally and factually unfounded.”
Tiffany also accused LVMH CEO Bernard Arnault of using “all means and opportunities available to him to pay LVMH the lowest possible price for the assets he wants.”
In late September, the LMVH accused Tiffany of mismanagement during a pandemic. He noted that the jewelry network paid the highest dividends, while the company “burned cash and reported losses.”
“No other elite company in the world has done this during this crisis,” the LVMH said in a statement. He noted other examples of what he called mismanagement in the submission, including capital cuts and marketing investments and additional debt.
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Tiffany responded by what she called “unfounded and deceptive counterclaims” filed by LVMH. He claimed that this was another “outright attempt” to evade his contractual obligation to pay an agreed price for Tiffany.
“Tiffany acted in full compliance with the merger agreement, and we are confident that the court will agree in court and demand concrete action from LVMH,” Tiffany chairman Roger Farah said in a statement. “If LVMH had in fact believed the allegations made in the complaint, LVMH would not have required a letter from the French Foreign Minister as an excuse to refuse closure.”