LVMHA said Tuesday it has filed a counterclaim against Tiffany to avoid a 16 16.2 billion takeover that would have been the largest ever in the luxury industry.
The lawsuit, filed Monday in Delaware, states that LVMH “has full confidence that the conditions required to close Tiffany’s acquisition have not been met.” He adds that “the tyrannical arguments put forward by Tiffany are completely baseless.”
The announcement comes in the wake of a hefty glimpse of Louis Vuitton’s owner scrapping the acquisition in early September. In a statement at the time, France’s LVMHA said it would not be able to complete Tiffany’s acquisition “because it stands out.”
The Frenchman paid the U.S. for the French goods. Citing the risk of tariffs and Daphne’s request by the end of the year.
Jewelery chain Tiffany immediately sued Delaware to enforce the agreement, saying the French government’s request had no basis in law.
In a lawsuit on Monday, LVMHA referred to the coronavirus crisis, saying there was now a “material adverse effect.” Strongly reprimanding, he also condemned Tiffany’s “mismanagement of her business”, which she said was a clear breach of her obligation to work in the normal way.
“For example, Tiffany paid the most likely dividends when the company was burning cash and reporting losses. No other luxury company in the world did so during the crisis. There are many examples of mismanagement in filing, including capital reductions and marketing investments.” “And taking on additional debt,” LVMH said in a statement on Tuesday.
CNBC’s Amelia Lucas and Lure Ren Thomas contribute to this article.
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