French Finance Minister backs Le Drian over LVMH-Tiffany intervention
French Finance Minister Bruno Le Maire on Monday backed an intervention by the country's foreign minister Jean-Yves Le Drian in French luxury goods giant LVMH's LVMH.PA plans to back out of a takeover of U.S. jeweler Tiffany TIF.N.
"Mr Le Drian took the decision which appeared to him to
be the right one," Le Maire told France 2 television, adding that Le Drian
was working to protect French interests in his intervention on the LVMH-Tiffany
deal.
Last week, LVMH said its board had received a letter from
the French foreign ministry asking it to delay the acquisition of Tiffany to
beyond Jan. 6, 2021, given the threat of additional U.S. tariffs against French
products.
Both Tiffany and LVMH have started a legal battle regarding
the state of the deal.
Tiffany sued LVMH after the French company said it could not
complete the $16 billion takeover of Tiffany due to the French government
request.
LVMH also said it said would counter-sue Tiffany, accusing
it of mismanagement during the coronavirus crisis after the U.S. jeweler
accused the French group of trying to bow out of a $16 billion acquisition
deal.
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