Capri Holdings (CPRI) shares could fall to the low-to-mid $20s if Tapestry’s (TPR) $57 per share takeover is successfully blocked by the Federal Trade Commission, Yiqin Shen of Bloomberg reports, citing a survey of 20 merger-arbitrage specialists. The survey, conducted on Tuesday, focuses on merger-arbitrage estimates on the Capri’s downside price – a level that reflects the stock’s fundamental value by the end of 2024, when the outcome of the FTC’s challenge is expected to be either upheld or overturned in court, Shen notes. Shares of Capri Holdings are down 5% to $34.81 in midday trading.
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Read More on CPRI:
- Capri Holdings price target lowered to $42 from $57 at Telsey Advisory
- Capri Holdings Contests FTC Block on Tapestry Merger
- FTC moves to block Tapestry’s acquisition of Capri Holdings
- Capri ‘strongly disagrees’ with FTC’s decision to block Tapestry deal
- Tapestry responds to FTC’s lawsuit to block proposed acquisition of Capri
