BREAKING NEWS: Elsa Peretti In Talks To Break With Tiffany & Co.

Tiffany In Talks To Buy Elsa Peretti's Intellectual Property Rights

Elsa Peretti's Sevillana Collection
via Fay Cullen website

(RTTNews.com) - Luxury jewelry retailer Tiffany & Co. (TIF) said it has made a firm offer to buy jewelry designer Elsa Peretti's intellectual property rights, but both parties are yet to reach a deal.

Since 1974, Tiffany has been the sole licensee for these rights necessary to make and sell Peretti-designed products under Peretti's trademarks.

As per a U.S. Securities and Exchange Commission filing made by Tiffany on Wednesday, Peretti has warned that she may terminate the license agreement if both parties fail to agree on terms regarding the deal price.

A termination of the license agreement could adversely affect Tiffany's operating results. As per the filing, the designs of Peretti accounted for 10 percent of Tiffany's net sales in 2009, 2010 and 2011, while Peretti receives a royalty.

Peretti recently had expressed interest to sever her relationship with Tiffany, following which her advisors initiated negotiations for the transaction.

Info via NASDAQ.com - for more on the story: http://www.nasdaq.com/article/tiffany-in-talks-to-buy-elsa-perettis-intellectual-property-rights-20120524-00026