Capri shares fell nearly 47% before the market opened as the acquisition of MK's parent by Coach was called off.
1min read Securities Times News, on October 25, Capri's US shares fell nearly 47% before the market, and Tapestry rose more than 8% before the market, as the US federal court halted their merger.
The US court blocked Tapestry's plan to acquire its rival Capri for $8.5 billion. The Federal Trade Commission argued that the deal would eliminate competition between the two largest handbag manufacturers in the US and create a huge company that could unfairly raise consumer prices. Tapestry refuted these claims, saying the deal was triggered by fierce competition in the US handbag industry and was aimed at countering European companies such as Gucci that were constantly grabbing market share.
The merger involved six brands, including Tapestry's Coach, Kate Spade, and Stuart Weitzman; and Capri's Versace, Jimmy Choo, and Michael Kors. If successful, the six brands would be consolidated under one roof.
