In the world of luxury, the loudest scandal in history has erupted. He followed the news that the largest deal in the industry - the purchase of a jewelry house by a French conglomerate - would not take place.
It became known last week that the French conglomerate will not be able to complete the planned deal worth $ 16.2 billion. This turn of events is associated with a request by the French Foreign Ministry to postpone the deal due to US threats to impose taxes on a number of French goods. However, the matter did not stop there.
The other day at Tiffany & Co. announced their intention to file a lawsuit against LVMH. It became known that the lawyers of the jewelry house drew up a 114-page document explaining how the French holding violated the terms of the preliminary agreement. Among other things, the list indicates that LVMH did not fulfill its promises on financial guarantees related to unfavorable economic conditions, as well as a violation of the timing of preparing documents for the transaction. Tiffany claims that, after deliberating, the leadership of the French conglomerate decided to use the coronavirus crisis as an excuse to cancel the purchase or to bring down the price.
In turn, representatives of LVMH went to court, accusing Tiffany of libel and misleading shareholders. In addition, the holding noted a drop in the income of the jewelry company as a result of the pandemic.