Following the missed union between LVMH and Tiffany, they have been sharpening their weapons. First, the US brand has pledged they will take legal action to force their partner to close the deal. On the other hand, the French company has accused the missed partner of being dishonest: they have vowed they will set a “strenuous defence”.
What an argument
The French luxury giant expressed their “astonishment” about Tiffany’s reaction and their decision to launch a lawsuit, which they deem as “fully unfounded”. Yet, then, they have raised their voice as they have accused the US brand of being dishonest. According to the French company, the lawsuit “was clearly arranged a long time ago and shareholders have been informed about it misleadingly”.
Besides that, according to LVMH, such legal action is “libellous and evidences Tiffany’s dishonesty while dealing with a partner”. As reported by the Corriere della Sera, “LVMH are going to set a strenuous defence” and will prove, before the Court of Delaware, that allegations are unfounded as they claim they acted in a timely manner before the Authorities of various countries. “Just for the records, they will lodge the files, in Brussels, as expected, in the next few days, as formerly scheduled by the European Commission – reported the newspaper –: Tiffany are fully aware of it. We expect such authorization will be reasonably granted in October”.
The counterreaction
LVMH have now counterattacked, quite openly actually, Tiffany’s management. “The results they achieved in the first six months of the year – they pointed out – alongside 2020 outlook are highly disappointing and considerably less rewarding compared to the ones achieved by some similar brands of LVMH group”. According to Fashion Network, LVMH have reportedly sharpened their weapons as they claimed that Tiffany paid out big dividends while making a loss. At this point, allegedly, such elements further “evidence that conditions for closing Tiffany buyout deal still are not fulfilled”.
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