The Pursuit of Tiffany by LVMH

Bernard Arnault, the master dealmaker and richest man in France, decides to acquire Tiffany for his luxury conglomerate, LVMH. Despite initial surprise and skepticism in the industry, Arnault sees the value and potential in Tiffany's brand. LVMH offers a record-breaking $16.2 billion for the acquisition. The deal is set to close by November 24, 2020, but soon, the COVID-19 pandemic hits, causing Tiffany's business to suffer. Arnault becomes increasingly frustrated with Tiffany's handling of the crisis, as they continue to pay dividends and rent instead of conserving cash. LVMH attempts various tactics to renegotiate the deal, culminating in a letter claiming that the French government requested a delay in response to US-imposed tariffs. Tiffany responds by suing LVMH, triggering a legal battle over the material adverse effect clause in the merger agreement. The trial is scheduled for early January, and it will be closely watched as it has implications for future deal making in the pandemic era.