The Federal Trade Commission is challenging Coach owner Tapestry acquisition of Michael Kors owner Capri As evidence emerged in court, it has become clear just how difficult it is to define a category as nebulous as “accessible luxury” bags. The market seems to think the companies’ arguments are convincing, though not enough to be confident that they will win: Capri’s shares have risen about 12% since the hearings began to $38.87, well off the $57-per-share price that Tapestry agreed to pay if the deal goes through. One of the FTC’s core arguments has been that if Coach and Michael Kors don’t compete head-to-head anymore, then prices for handbags sold for hundreds of dollars rather than thousands—a category it calls “accessible luxury”—will go up, reducing consumer choice.
Yahoo! Finance: CPRI News
