29-10-2019
French luxury giant LVMH has approached Tiffany about an acquisition. According to CMC Markets UK chief market analyst Michael Hewson, LVMH had made a US$14.5 billion offer and Tiffany had yet to respond to it and its board of directors is reviewing the proposal at the moment.
Tiffany has a market capitalisation of US$11.9billion. A successful takeover would mark one of LVMH’s largest-ever acquisitions and further expand the owner of Louis Vuitton and Bulgari in jewellery and footprint in the United States.
“There can be no assurance that these discussions will result in any agreement,” LVMH confirmed the possible transaction with Tiffany in a statement. Analysts said Tiffany might rebuff the offer to seek a higher price as Tiffany could be worth as much as US$140-$160 per share while the current offer only worth US$120 per share.