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Monday, December 23, 2013

CORRECTED-Tiffany ordered to pay Swatch $449 million in damages, cuts outlook, (NYSE: TIF)

Tiffany & Co on Sunday said a Dutch arbitration court ruled that it must pay Swatch Group 402 million Swiss francs ($448.79 million) in damages over their failed joint venture to produce and market watches, and the New York-based jeweler slashed its profit outlook for the year.Swatch, the world's largest watchmaker, and Tiffany, a New York-based jeweler, had struck an agreement in 2007 to develop watches under the Tiffany brand together.The arrangement, intended to last for 20 years and give Tiffany a much bigger place in the luxury watch market, never turned into big business for either company, and the deal ended in acrimony in 2011.The companies sued one another in an arbitration court in the Netherlands, where their Tiffany Watch Co joint venture was domiciled. The case went to arbitration in 2012.

Tiffany & Co. (Tiffany) is a holding company that operates through its subsidiary companies. Shares of TIF traded higher by 0.21% or $0.19/share to $90.62. In the past year, the shares have traded as low as $55.83 and as high as $91.51. On average, 966742 shares of TIF exchange hands on a given day and today's volume is recorded at 1081188.