• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Capri shares tumble 46% after US court blocks $8.5 billion merger with Tapestry

by October 25, 2024
written by October 25, 2024

(Reuters) – Shares of Michael Kors owner Capri slumped nearly 46% in premarket trading on Friday after a U.S. judge blocked its pending $8.5 billion merger with handbag maker Tapestry (NYSE:TPR).

Tapestry agreed to buy Capri last year to create a U.S. luxury giant that could compete better with larger European rivals by bringing brands Coach , Kate Spade, Versace, Jimmy Choo and Michael Kors under one roof.

The Federal Trade Commission (FTC) sued to block the deal in April, saying it would eliminate “direct head-to-head competition” between the top two U.S. handbag makers.

Should the deal fall through, “Capri could potentially seek another suitor” as it grapples with execution missteps at Michael Kors, said Dana Telsey of Telsey Advisory Group.

Tapestry’s shares rose nearly 13%. Analysts said the deal would have been an added risk to the Coach parent even though it was well-positioned to revive Capri.

During an eight-day trial in September, the FTC argued the deal would create a massive company with the power to unfairly raise prices. U.S. District Judge Jennifer Rochon rejected the companies’ defense, including their argument that handbags are non-essential items and consumers can control the prices by not buying them if they become too expensive.

Tapestry believes the ruling was incorrect and plans to appeal, it said on Thursday.

“I think the (defense) parties might try to get an expedited appeal to the second circuit. I think they do have a chance on their timeline to do that,” said Mike Keeley, partner and chair of the antitrust group at Axinn, Veltrop & Harkrider LLP.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Coursera stock plummets 18% after revenue forecast cut resets growth outlook
next post
Carter’s Inc. stock edges higher after topping Q3 expectations

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Bed Bath & Beyond relaunches with first store in Nashville, plans dozens more

      August 9, 2025
    • Lawsuit accuses Apple of stealing trade secrets to create Apple Pay

      August 9, 2025
    • Trump demands resignation of Intel CEO over alleged China ties

      August 7, 2025
    • Claire’s, known for piercing millions of teens’ ears, files for Chapter 11

      August 7, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (592)
    • Stock (6,426)

    Latest News

    • Bed Bath & Beyond relaunches with first store in Nashville, plans dozens more
    • Lawsuit accuses Apple of stealing trade secrets to create Apple Pay

    Popular News

    • Golf-LIV Golf signs multi-year media rights deal with Fox Sports
    • Investing.com poll: What will investors do following Nvidia’s Q3 earnings?

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy