LVMH bids 14.5 billion for Tiffany

LVMH considers acquiring Tiffany. The French luxury holding, owner of brands like Louis Vuitton, Dior or Celine, has done an all-cash takeover bid of about 120 dollars per share, valuing Tiffany at 14.5 billion dollars, according to The Wall Street Journal. 

The American company has not yet responded to the offer of LVMH. On Friday, the shares of Tiffany, which is listed on the New York Stock Exchange, closed the day at 98.5 dollars per share, giving it a market value of 12 billion dollars. 

LVMH has confirmed this morning that it has held preliminary discussions on a possible deal. However, the group has been cautious, adding that “it cannot be guaranteed that these talks will result in any agreement.”

Tiffany would be the first purchase of LVMH since Belmond, specialized in hotel management. The American company would widen the conglomerate’s jewelry portfolio, that includes other brands like Bulgari, Hublot and Tag Heuer.

LVMS’s  revenue in the third quarter was 13.3 billion, up 17% compared to the same period in 2018. Organic revenue growth was 11% for the first nine months of the year and the company stated despite the difficult context in Hong Kong, the region had a good performance. Tiffany, meanwhile, closed the first half with a 3% drop in its revenue, to 2 billion dollars.