VGG1890L1076 - Common Stock
Tapestry Inc. is planning to buy back $6.1 billion of bonds it sold to fund its now blocked purchase of Capri Holdings, after abandoning the deal due to antitrust pressure.
Capri Holdings Ltd and Tapestry Inc. have ended an $8.5 billion plan to merge after a US court order freezing the deal due to US antitrust regulators’ objections.
Shares of the Michael Kors parent dropped on a disappointing earnings report.
Is Capri stock a buy after its share price plunged?
Tapestry's acquisition of Capri has been blocked.
A court order freezing Tapestry Inc.’s $8.5 billion acquisition of Capri Holdings Ltd. has put the fashion deal in jeopardy, sent shares of Capri into a tailspin and punished funds and merger arbitragers that bet against the ruling.
Capri Holdings Ltd. put options far below the market went from being almost worthless to a potential value greater than $2 million as shares plunged more than 50% in aftermarket trading after a judge blocked the bag maker’s proposed merger with Tapestry Inc.
A judge blocked the planned $8.5 billion acquisition by Tapestry Inc., maker of Coach and Kate Spade handbags, of rival Capri Holdings Ltd.