Shares of Tiffany were under pressure for a second straight session Wednesday following a report that its deal to be acquired by LVMH may be coming apart.

Tiffany's stock was down 0.6 percent in mid-morning trading at $116.32 after shares dropped nine percent Tuesday.

Fashion publication Women's Wear Daily reported that the French luxury giant was reevaluating the $16.2 billion Tiffany acquisition previously seen as worthy investment to bolster the company's US presence.

The French company is rethinking the deal out of concerns about Tiffany in the wake of the coronavirus outbreak and the mass demonstrations in the United States following the police killing of an unarmed black man, George Floyd, WWD reported, citing people familiar with the matter.

LVMH, which owns Louis Vuitton, Bulgari and Dior, also has concerns about Tiffany's debt level.

Tiffany's New York flagship, shown here earlier this spring, has been closed since mid-March due to the coronavirus
Tiffany's New York flagship, shown here earlier this spring, has been closed since mid-March due to the coronavirus AFP / Angela Weiss

LVMH's board was due to meet Tuesday night to discuss the transaction, according to WWD.

But the company has not communicated its current thinking to Tiffany, banking sources told AFP.

Some analysts have questioned whether LVMH should lower the price for Tiffany following a retreat in the jeweler's shares since the deal was announced in November.

LVMH paid $135 per share for Tiffany under the original transaction.

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