Tapestry (TPR; Baa2, BBB+; double Neg) {TPR US Equity} {CPRI US Equity}
* Note responses to FTC complaint & prehearing conferences will occur in coming weeks (before evidentiary hearing in September) - failure to respond will allow FTC to make final order - co's have clearly indicated intent to respond last night but noting there are risks between now and September.
* Above in reference to the administrative complaint/ proceedings...there is a "authorized lawsuit in federal court" as well from FTC - generally administrative final findings can be appealed to federal court (or another appeals court) - our read for now (in relation to forced call timing) is any federal court rulings would be after administrative rulings.
Former FTC commissioner Kovacic was on media the other day adding this deal would not be of appeal to the regulator as it doesn't emphasise protecting the downtrodden - but FTC using new merger guidelines from December to target potential effects on labour market/wages indicates it might be doing just that - legal commentators say untested in court.
31's +5bps/-30c cheaper this morning.