News from Tiffany & Co. (NYSE:TIF) on Friday has TIF stock on the rise to end the first week of June.
This jump comes after news that French luxury group LVMH (OTCMKTS:LVMUY) will not buy shares of TIF stock on the open market in its acquisition deal from November. In fact, a report emerged earlier on Friday that Tiffany & Co. may seek legal action against LVMH for attempting to restructure the agreement.
The original price tag of $16.2 million included paying out $135 per share in cash for shares of TIF stock. That said, however, the novel coronavirus hit this deal hard. And now, LVMH is attempting to rework the numbers with Tiffany and Co.
According to Forbes, “sources close to negotiations told Reuters that LVMH CEO Bernard Arnault is now looking to convince Tiffany & Co to lower the price of $135 per share agreed in the deal.” Additionally, per a release from LVMH on Thursday:
“Considering the recent market rumors, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market.”
In turn, a shadow of doubt has now been cast over the acquisition overall — but the Tiffany & Co. news has been good for its stock.
Shares of TIF stock were up 6.2% as of Friday afternoon. Tiffany & Co. will next report earnings on June 9.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.