French billionaire and LVMH boss Bernard Arnault’s $16 billion acquisition of Tiffany will reduce by $425 million after a discount was agreed between the two companies, according to Reuters. The agreement ended months of bitter legal dispute as Arnoult wanted a new deal at a reduced price after accusing Tiffany of paying a quarterly dividend of $0.58 per share in May and August.
- Revised takeover bid allows Tiffany to declare another dividend in November, bringing the total payout to $280 million.
- In September, LVMH said it could not complete the deal by the November 24 deadline, citing a letter by the French Foreign minister asking it to delay purchase over concerns of U.S. tariffs on French products.
- Tiffany has accused LVMH of using the government letter to delay or walk away from the deal as the letter has since been declared non-binding.
- Tiffany says it acted in the shareholders’ interest in paying the dividends, which totaled around $70 million a quarter.
Tiffany year-to-date performance is down 2.12%, while LVMH YTD is up 1.61%
