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Capri Holdings (NYSE:CPRI) fell almost 1% in after hours trading as the Federal Trade Commission scheduled a closed-door meeting for next Monday.
The FTC scheduled a closed-door meeting for Monday at 11am at consideration of a non-public law enforcement matter.
The FTC notice comes after a report late Friday that the FTC is leaning toward filing a lawsuit to block the $8.5 billion Capri sale to Tapestry (NYSE:TPR). While no decision has been made at this point, the FTC is expected to vote on the transaction this month, according to a Capitol Forum report, which cited people familiar with the matter. It’s not a forgone conclusion that the FTC will sue to block the deal.
Some traders are worried that the antitrust regulator may be meeting to decide if the agency may try to block the deal. Investors often speculate when meeting notices are given that the FTC may be voting on an ongoing deal that’s being reviewed. While sometimes these meetings are about public companies, oftentimes they are about private firms.
The Capri/Tapestry deal received a request for more information from the FTC in November. Recent reports indicate that the FTC is said to be focused on whether the two are each other’s closest substitutes and if the deal may have an impact on jobs in the handbag industry.
Earlier on Monday, the European Commission approved the Capri (CPRI) deal, Tapestry disclosed in an 8-K filing. The deal also received approval from Japan’s antitrust regulator last week, and the U.S. is the last regulator needed for the transaction to close.
Tapestry (TPR) in early August struck a deal to acquire Capri (CPRI) for $57.00 per share in cash. The deal will combine Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors.