Style
Tapestry Fashion Deal in Limbo as Capri Plunges, Arbs Take Hit
- Court’s halt of $8.5 billion deal sends Capri to ‘square one’
- After major victory for FTC, Wall Street bets on merger sour
A Michael Kors store in Barcelona, Spain. In addition to Michael Kors, Capri sells Versace and Jimmy Choo.
Photographer: Angel Garcia/BloombergA 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.
The court’s decision Thursday temporarily blocking the buyout — a big score for US Federal Trade Commission Chair Lina Khan — caused Capri’s stock to plunge to record lows Friday. The ruling also sparked selling of other companies in deals facing antitrust scrutiny, including Albertsons Cos. and Vizio Holding Corp.