US FTC preparing to sue to block $8.5 billion takeover of Capri by Tapestry, NYT Dealbook reports

By Thomson Reuters Apr 17, 2024 | 5:54 AM

(Reuters) – The U.S. Federal Trade Commission (FTC) is preparing to sue to block Coach parent Tapestry’s $8.5 billion deal to buy Michael Kors owner Capri Holdings, NYT Dealbook reported on Wednesday, citing people familiar with the matter.

The deal, which would bring together top luxury labels such as Tapestry’s Kate Spade, Stuart Weitzman and Capri’s Jimmy Choo and Versace, received regulatory clearance from the European Union and Japan on Monday.

The FTC’s five commissioners are expected to meet this week to discuss the case, a move that could precede a formal vote on whether to file a lawsuit, according to the report.

The companies and the FTC did not immediately respond to Reuters requests for comment.

Capri’s shares were down 5% before the bell, while those of Tapestry were flat.

(Reporting by Savyata Mishra in Bengaluru; Editing by Shounak Dasgupta)