Tiffany (TIF) states that LVMH is deliberately trying to stall court proceedings to avoid completing the deal on time.
Tiffany last week sued LVMH in the Delaware Court of Chancery, the top U.S. business court, after the maker of Louis Vuitton handbags said it could not complete the acquisition, citing a French government request to delay the close and Tiffany's deteriorating business outlook due to the COVID-19 pandemic. LVMH has said it will defend itself vigorously. In a filing on Wednesday, it accused Tiffany of mismanaging the pandemic's financial fallout and arguing this has triggered a material adverse effect (MAE) that nullifies their agreement.
Tiffany & Co. (NYSE: TIF) says LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) is stalling for time to ensure the deadline for their busted merger expires. The jeweler is suing the fashion house to force it to complete its $16 billion acquisition, but says LVMH is opposing a quick trial because it wants the Nov. 24 deadline to pass, after which it won't have to close on the purchase. In a statement yesterday, Tiffany chairman Roger Farah said, "If LVMH were confident in its legal position, it would have no reason to oppose an expedited trial schedule."