French luxury conglomerate, LVMH, which last year confirmed it would buy Tiffany & Co for $16.2 billion, is now considering buying shares of the jewellery brand for less on the open market, Bloomberg News reported on Thursday.
Since the global outbreak of Coronavirus, global stock markets have dropped and business activities have been halted, leading to the disruptions of potential business acquisitions and impacting industry relationships.
According to the Bloomberg report, LVMH has discussed the plan with Tiffany’s board, which could give the potential transaction a green signal after reporting quarterly results.
Tiffany is due to report its results on Friday.
The reports said, LVMH is yet to make a decision on the transaction and is discussing potential legal challenges to the idea.
Last month, LVMH was expected to raise 9.3 billion euros from bond markets to help to finance the deal, which is expected to be completed in the middle of 2020. The latest move confirms the luxury conglomerate’s interest in Tiffany.
Due to the crisis, Tiffany has temporarily closed several stores, including its Fifth Avenue flagship store in New York, and reduced working hours at other outlets to limit the spread of the virus.