French luxury goods group LVMH's $16.2-billion takeover of Tiffany & Co is looking less likely to go through, amid a deteriorating situation in the U.S. market, fashion trade publication WWD reported on Tuesday.
Tiffany's shares closed down nearly 9% after the news.
LVMH's board called a meeting in Paris Tuesday night specifically to discuss the matter, WWD reported, citing sources.
LVMH's board is concerned about the Covid-19 pandemic and protests linked to the death of George Floyd at the hands of Minneapolis police, according to the report.
The French company's board also voiced concerns about Tiffany's ability to cover all its debt covenants at the end of the transaction, which was expected to be concluded mid-year, WWD reported.
Tiffany did not immediately respond to a request for comment and LVMH declined to comment.