Traders Fear Antitrust Risk in $8.5 Billion Tapestry-Capri Deal

Traders are growing increasingly skeptical that antitrust regulators will approve Tapestry Inc.’s pending $8.5 billion takeover of rival Capri Holdings Ltd. — even if Tapestry’s leadership is confident the deal will go through.

The concerns stem from the tie-up of two major players in the high-end accessories market. Tapestry sells leather products and other luxury goods under the Coach, Kate Spade and Stuart Weitzman brands, while Capri controls high-end labels Michael Kors, Versace and Jimmy Choo. The combined companies would be the fourth-largest luxury company in the world and second largest in the Americas after LVMH, according to research ...