Capri-Tapestry Merger Blocked. What Should Investors Do With the Stocks?

In a stunning turn of events, a judge ruled in favor of the U.S. government and blocked the proposed merger between handbag and fashion rivals Capri Holdings (NYSE: CPRI) and Tapestry (NYSE: TPR). The Federal Trade Commission (FTC) sued to block the merger in April after Tapestry agreed to buy Capri last year, arguing that the combination would hurt consumers and leave less affordable handbag options. The FTC lawsuit was widely viewed as a long shot, as there was little precedence to block deals in the fashion industry and it would be difficult to prove that a deal would hurt consumers or increase prices.Both Capri's Michael Kors brand and Tapestry's Coach brand, meanwhile, are typically viewed as accessible luxury brands. On its website, Coach has handbags priced as high as $10,000, while Kors has bags priced as high as $3,300, so they aren't selling cheap merchandise.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool