Capri Holdings LimitedNYSE: CPRI

Is Capri stock a buy after its share price plunged?

Tapestry's acquisition of Capri has been blocked.

FTC sued to block the deal in April, saying it would eliminate "direct head-to-head competition" between the top two US handbag makers.

Capri Holdings' stock has plummeted nearly 50% in post-market trading after Tapestry's proposed acquisition with Tapestry was blocked. Capri has struggled for the past 2 years, largely due to management's inability to integrate brands like Versace and Jimmy Choo, in my belief. Despite operational struggles, Capri's high gross margins suggest that the brands are not damaged, and that improved management could lift shareholder value substantially.

Capri Holdings (CPRI) shares are plummeting nearly 50% in premarket trading Friday after a federal judge blocked Coach owner Tapestry's (TPR) $8.5 billion acquisition of the Versace and Michael Kors parent.

Shares of Michael Kors owner Capri slumped nearly 46% in premarket trading on Friday after a U.S. judge blocked its pending $8.5 billion merger with handbag maker Tapestry.

A US judge has temporarily halted an $8.5 billion merger betweenTapestry Inc (NYSE:TPR) and Capri, blocking the combination of major fashion brands such as Michael Kors, Kate Spade, and Coach. Judge Jennifer Rochon's decision, issued on Thursday, pauses the deal while the Federal Trade Commission (FTC) completes its review.

Stacey Widlitz, president and founder of SW Retail Advisors, reacts to a federal judge blocking the planned $8.5 billion acquisition by Tapestry, maker of Coach and Kate Spade handbags, of rival Capri Holdings. Sign up for the Bloomberg Deals newsletter for the latest news and analysis on M&As, IPOs, PE deals, startup investing and everything in between.

A federal judge on Thursday blocked Tapestry Inc.'s planned $8.5 billion acquisition of Capri Holdings, agreeing with regulators that the deal would hurt competition in the handbag industry.