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Will Capri Holdings' share price recover to pre-ruling levels by March 31, 2025?
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Capri Holdings Limited•Federal Trade Commission•Lina Khan•FTC•Tapestry•Coach•Capri•Michael Kors•Versace•Jimmy Choo
Resolution / Starting Odds
Yes • 50%
No • 50%
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Story
Judge Blocks Coach Owner Tapestry's $8.5 Billion Purchase of Capri, Michael Kors Parent
Oct 24, 2024, 08:16 PM
A federal judge has blocked Tapestry Inc.'s planned $8.5 billion acquisition of Capri Holdings Limited, marking a significant victory for the Federal Trade Commission and its Chair Lina Khan in their efforts to prevent consolidation in the luxury goods market. The court granted the FTC's preliminary injunction, agreeing with the argument that 'accessible-luxury handbags are distinct from mass market and true luxury,' and that the merger would reduce competition in this specific segment. Tapestry, owner of Coach, and Capri, which owns Michael Kors, Versace, and Jimmy Choo, had aimed to combine their brands. Following the ruling, Capri's shares plunged 51% in after-hours trading, while Tapestry's shares rose 14%.
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Increase by 10% or more • 25%
Increase by less than 10% • 25%
Decrease by less than 10% • 25%
Decrease by 10% or more • 25%
Appeal successful, acquisition proceeds • 25%
Appeal unsuccessful, acquisition remains blocked • 25%
Settlement reached, acquisition terms modified • 25%
Appeal withdrawn or abandoned • 25%
Focus on organic growth • 25%
Seek new merger/acquisition • 25%
Sell off a major brand • 25%
Other strategic move • 25%
Tapestry market cap increases significantly • 25%
Capri Holdings market cap recovers significantly • 25%
Both companies' market caps decline • 25%
Both companies' market caps remain stable • 25%
