Judge Blocks $8.5 Billion Tapestry-Capri Merger

The ruling cites concerns over reduced competition in the accessible-luxury handbag market.

Judge Jennifer Rochon ruled that the merger could significantly lessen competition, violating antitrust laws.
The Federal Trade Commission had previously filed a lawsuit to block the merger, which began trial in September.
Tapestry, owner of Coach and Kate Spade, and Capri, owner of Versace and Michael Kors, plan to appeal the decision.
Capri's stock plummeted nearly 49% following the ruling, while Tapestry's stock rose over 13%.
Analysts suggest Capri may need to sell off brands or go private, while Tapestry could explore other acquisitions.