LVHM takes a shine to Tiffany and Co with $14.5bn offer
Takeover would be largest to date for world’s largest luxury goods group
French luxury goods group LVMH has offered to buy the jeweller Tiffany & Co for $14.5 billion, a move which the Financial Times says is likely to be rejected.
LVMH, the world’s biggest luxury goods group and owner of the Louis Vuitton and Bulgari brands, has proposed an all-cash bid, valuing Tiffany at about $120 per share, which would make it the French group’s biggest purchase to date, adding to its $5.2 billion purchase of Bulgari in 2011.
That would be a sharp 22 per cent premium on Tiffany’s current share price, which closed at $98.55 on Friday 25 October.
LVMH did not give any financial details. Shares of the company were up 1 per cent in early trading, touching highs last seen in July. Tiffany has yet to respond
Shares in European watch and jewellery companies were among the top gainers in Europe in early deals after news of LVMH’s interest in Tiffany, Reuters reported.
Pandora was up 2.8 per cent, while Salvatore Ferragamo was the biggest gainer on the Italian bourse, up 3.7 per cent, and Swatch and Richemont topped the Swiss market, up 1.6 and 1.9 per cent respectively in morning trading.
