Tiffany (TIF) and LVMH Moet Hennessy Louis Vuitton said Thursday they have agreed to lower the price for the acquisition of the jewelry company by the French luxury goods group, ending their legal dispute.
In a statement, the companies said LVMH will buy Tiffany for $131.50 per share in cash instead of the originally planned $135 per share. In addition, Tiffany will also declare and pay a regular dividend of $0.58 per common share on Nov. 19. Other terms remain unchanged.
Can you suggest what would happen to long 135 calls and long 130 puts which are due to expire in 2 years if the merger goes good? Will the positions get closed and loose the money?(Ofcourse bought at insanely cheap prices)