Why Capri Holdings And Tapestry Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
Shares of Capri Holdings Limited (CPRI) and Tapestry, Inc. (TPR) fell after the FTC filed a lawsuit to block Tapestry's $8.5 billion acquisition of Capri Holdings. The FTC argues the merger of their brands (Coach, Kate Spade, and Michael Kors) would harm competition, affecting prices, innovation, and worker conditions. Both companies have defended the merger, stating it won't limit competition and have received approvals from other jurisdictions, planning to contest the FTC's decision in court.
April 23, 2024 | 5:02 pm
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NEGATIVE IMPACT
Capri Holdings shares fell by 3.13% to $36.79 after the FTC filed a lawsuit to block its acquisition by Tapestry, citing competition concerns.
The FTC's lawsuit directly targets the acquisition of Capri Holdings by Tapestry, raising concerns over competition and market dominance. This legal challenge is a significant factor likely to influence investor sentiment negatively in the short term, as it introduces uncertainty regarding the future of the merger and its potential benefits for Capri Holdings.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Tapestry, Inc. shares fell by 0.67% to $40.04 following the FTC's lawsuit to halt its proposed $8.5 billion purchase of Capri Holdings.
Tapestry's planned acquisition of Capri Holdings is directly challenged by the FTC, citing anti-competitive concerns. This legal action introduces significant uncertainty and potential delays in the merger process, negatively affecting investor confidence and Tapestry's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100