Capri soars as Tapestry to buy Michael Kors parent in $8.5 bln deal

TPR Co

10/08/2023 14:57

(Updates)
    ** Shares of Michael Kors owner Capri  CPRI.N  rise as much
as 57.5% to $54.52
        ** Shares on course for biggest one-day percentage gain
on record, if current levels hold 
  
    ** Capri will be bought by Coach parent Tapestry  TPR.N  in
an $8.5 bln deal, companies said, creating a top U.S. fashion
house that can better compete with larger European rivals in the
global luxury market
    ** Tapestry will pay $57 per share in cash, representing a
premium of nearly 65% on CPRI's last close; the equity value of
deal is $6.69 bln 
    ** TPR shares were down 9.5% at $37.18; stock on course for
worst day since March 7, 2022, if current levels hold
    ** The Wall Street Journal first reported about a potential
deal late on Wednesday
    ** Deal is expected to close in calendar year 2024
    ** "The acquisition of Capri by Tapestry is the logical next
step on the journey to create a global luxury powerhouse," says
Neil Saunders, managing director of GlobalData
    ** YTD, CPRI down about 40% and TPR up 8.2% through last
close 

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth;))