Traders' Doubt Loom Over Tapestry-Capri Deal Amid Regulatory Scrutiny: Report
Portfolio Pulse from Shivani Kumaresan
Traders express skepticism over the $8.5 billion acquisition of Capri Holdings Ltd (NYSE:CPRI) by Tapestry Inc (NYSE:TPR) due to antitrust concerns, despite Tapestry's confidence and secured European and Japanese approvals. The deal's completion is uncertain as U.S. regulatory approval is pending, and the market's reaction reflects this uncertainty with Capri's stock trading below the offer price and Tapestry's shares closing lower.

April 16, 2024 | 9:44 am
News sentiment analysis
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NEGATIVE IMPACT
Capri Holdings Ltd's stock is trading below Tapestry's offer price, indicating market skepticism about the acquisition's antitrust approval and completion.
The trading price of Capri Holdings Ltd below the offer price from Tapestry Inc signals market skepticism regarding the likelihood of antitrust approval and successful completion of the acquisition.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Tapestry Inc's stock closed lower amid concerns over its $8.5 billion acquisition of Capri Holdings due to antitrust scrutiny, despite having secured approvals in Europe and Japan.
Tapestry Inc's stock price decline reflects market concerns over the potential antitrust hurdles the acquisition might face in the U.S., despite optimism from the CEO and approvals from European and Japanese regulators.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90