Capri Sinks After FTC Wins Halt to $8.5 Billion Tapestry Tie-Up

Shares of Capri Holdings Ltd. plunged Friday morning after a federal judge on Thursday blocked the company’s planned $8.5 billion acquisition by Tapestry Inc., maker of Coach and Kate Spade handbags.

The shares were down 45% to $22.82 at 9:44 a.m. in New York, a record drop for the stock, while shares of Tapestry were up 12.6% to $50.06.

US District Judge Jennifer Rochon on Thursday froze the deal after concluding it would harm competition in the market for “accessible luxury” handbags. That gives the US Federal Trade Commission time for its own internal trial over the union, a ...