Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Coach parent Tapestry pulls $8.5 billion bid for Capri after FTC roadblock

admin by admin
November 14, 2024
in Economy
0
Coach parent Tapestry pulls $8.5 billion bid for Capri after FTC roadblock
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

(Reuters) -Tapestry said on Thursday it was terminating its $8.5 billion bid for Michael Kors owner Capri after a legal hurdle last month, ending their effort to create a U.S. luxury giant to compete with major European players.

The deal would have brought six brands under one roof: Tapestry (NYSE:TPR)’s Coach , Kate Spade and Stuart Weitzman; and Capri’s Versace, Jimmy Choo and Michael Kors. But regulators sued to block the deal earlier this year, citing anti-competition concerns.

Capri shares were down nearly 6% in premarket trading on Thursday. They have lost nearly half of their value since a U.S. judge blocked the deal late last month.

Tapestry’s stock, on the other hand, was up 6%, as the company also announced a $2 billion share buy back.

The merger was blocked last month after the U.S. Federal Trade Commission (FTC) argued that it would eliminate head-to-head competition between the top two handbag makers and create a massive company with the power to unfairly raise prices.

The companies said on Thursday they mutually agreed that ending the merger agreement was in their best interest, as the outcome of the legal process was uncertain and unlikely to be resolved by Feb. 10, the deal deadline.

“We have always had multiple paths to growth and our decision today clarifies the forward strategy,” Tapestry CEO Joanne Crevoiserat said.

The company said it does not expect any acquisitions in the near term and has agreed to reimburse Capri’s expenses of about $45 million, incurred in connection with the merger.

Tapestry, which halted its merger plans last week as it appealed the U.S. judge’s decision, has raised its 2025 profit forecast after posting strong quarterly results.

Capri, on the other hand, has reported several straight quarters of sales decline since the deal was announced in August last year.

This post appeared first on investing.com

Previous Post

Euro zone economy seen hit early next year by Trump tariffs, say economists: Reuters poll

Next Post

ECB divided on risk of excessively weak inflation, accounts show

admin

admin

Next Post
ECB divided on risk of excessively weak inflation, accounts show

ECB divided on risk of excessively weak inflation, accounts show

Trending News

India stocks higher at close of trade; Nifty 50 up 0.48%

India stocks higher at close of trade; Nifty 50 up 0.48%

January 1, 2025
BP shares decline following weak Q1 gas trading forecast and rising debt

BP shares decline following weak Q1 gas trading forecast and rising debt

April 11, 2025
Trump taps Scott Bessent for Treasury, capping long drama over choice

Trump taps Scott Bessent for Treasury, capping long drama over choice

November 23, 2024
Subscribe to Insightful Word


    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025
    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    June 5, 2025
    Why Bank of America sees 13% upside on Roblox (RBLX)

    Why Bank of America sees 13% upside on Roblox (RBLX)

    June 5, 2025

    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025

    Latest News

    • ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant
    • Ripple releases $2.18B in XRP, price dips 2%
    • Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.