Jamie McCarthy/Getty Images Entertainment
Capri Holdings (NYSE:CPRI) fell 4.1% amid some investor concern about Federal Trade Commission’s review of its planned $8.5 billion sale to Tapestry (NYSE:TPR).
Investors may have been spooked by comments that were made in Washington, DC, out of the 2024 American Bar Association Antitrust Spring meeting, traders told Seeking Alpha on Thursday.
FTC Bureau of Competition Director Henry Liu is said to have made some comments about the agency focusing on head-to-head competition, not necessarily market definition. Although the Capri/Tapestry deal wasn’t specifically mentioned, some investors are concerned that the regulator may be referencing the deal through his comments.
Capri (CPRI) shares on Thursday hit their lowest level since the Tapestry (TPR) deal was announced in August and the deal spread is also the widest since the deal was unveiled.
The Capri/Tapestry deal received a request for more information from the FTC in November. Tapestry (NYSE:TPR) last month filed with the European Commission on the $57 a share cash deal for Capri (CPRI). The EC has set a provisional deadline for Monday.
Tapestry (TPR) in early August struck a deal to acquire Capri (CPRI) for $57.00 per share in cash. The deal will combine Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors.
FTC Chair Lina Kahn is also scheduled to speak at the 2024 ABA Spring Meeting Enforcers Roundtable on Friday.
