Capri Holdings Ltd

CPRI: XNYS (USA)
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Capri: Many Challenges Follow Failed Takeover, but We Think Undervaluation Is Extreme

No-moat Capri’s planned sale to narrow-moat Tapestry for $57 per share has ended. The deal was opposed by the US Federal Trade Commission on antitrust grounds, and it was unlikely to close after a recent ruling (see our notes of Oct. 25 and Nov. 8). No break-up fee will be paid, but Tapestry will reimburse Capri about $45 million for costs.

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