Tiffany & Co (TIF) shares are trading lower on Wednesday after LVMH Moet Hennessy Louis Vuitton (LVMUY) called off a deal to buy jeweler. Now, Tiffany plans to sue LVMH over the delayed takeover, according to Financial Times.

What To Know: The negotiations first started back in November. In June, LVMH officially backed down on its pursuit of renegotiating the price of its $16.2 billion acquisition of Tiffany & Co, but there had been hope the two would seek to renegotiate the deal.

"LVMH told Tiffany on Tuesday that it received a letter from the French government about a week earlier," according to FT. "The letter asked it to delay closing the deal until January 6 next year in an effort to dissuade the Trump administration from imposing tariffs on goods from France."

Why It's Important: If the deal were to close, it would be the largest acquisition ever in the luxury sector.

"Tiffany’s lawsuit will claim LVMH breached its transaction agreement by failing to inform the US company immediately after it received that letter," according to the FT report.

Tiffany shares were trading down 9.4% at $110.13 in Wednesday’s pre-market session. The stock has a 52-week high of $134.42 and a 52-week low of $86.39.