Tapestry (TPR; Baa2, BBB+; double Neg) {TPR US Equity} {CPRI US Equity}

FTC antitrust lawsuit to block Tapestry acquisition of Capri hit after the US close last night. Capri equities traded through it (in post-market). € lines have been bid in recent sessions (particularly the 31s). Breakeven on 31s (€103.3) is late September vs. late July on the 27's (€102.3). FTC doc seems to indicate 25th September 2024 as when the FTC evidentiary hearing will be heard on the complaint. The 27's screen the better option here, keeping in mind we do not include BS funding costs for breakeven (if included will shift later). Both co's out immediately vigorously defending deal/will fight in court.

• FTC lawsuit; “This deal threatens to deprive consumers of the competition for affordable handbags, while hourly workers stand to lose the benefits of higher wages and more favorable workplace conditions...Tapestry’s pattern of serial acquisitions, the acquisition of Capri will further entrench Tapestry’s stronghold"https://www.ftc.gov/system/files/ftc_gov/pdf/d0942...
• Tapestry response: "There is no question that this is a pro-competitive, pro-consumer deal and that the FTC fundamentally misunderstands both the marketplace and the way in which consumers shop...we have strong legal arguments in defense of this transaction and look forward to presenting them in court"Full: https://tapestry.gcs-web.com/news-releases/news-re...
• Capri response; "Capri intends to vigorously defend this case in court alongside Tapestry and complete the pending acquisition..."Full: https://www.capriholdings.com/news-releases/news-r...