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Louis Vuitton Wants To Buy Tiffany For $14.5B, Could Be Rejected

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Louis Vuitton Wants To Buy Tiffany For $14.5B, Could Be Rejected

France’s LVMH (EPA: MC)(OTC: LVMUY), the parent company of luxury fashion brand Louis Vuitton and Givenchy, offered $14.5 billion in a buyout deal to American jewelry retailer Tiffany & Co., Bloomberg reported on Sunday.

What Happened

The bid values Tiffany (NYSE: TIF) at about $120 per share, sources familiar with the matter told the publication. This value is about 22% higher than the $98.55 Tiffany’s shares closed on Friday.

If finalized, the deal would be the biggest ever for Bernard Arnault, LVMH’s Chairman and Europe’s richest man, Bloomberg notes. It would also be among the largest purchases made by a European company this year.

What’s Next

Tiffany is reviewing the offer, but it is likely to reject this "unsolicited" deal, according to the Financial Times. The U.S. jewelry veteran sees it as an undervaluing of their company, the publication said.

It's worth noting that Louis Vuitton deal values Tiffany at 16% lower than the all-time high closing value of $139.50 price it hit July last year.

“LVMH is the best luxury goods company in the world and has had huge success with Bulgari,” John Armitage, chief investment officer of Egerton Capital, one of the largest shareholders in Tiffany, told the Financial Times. “As Tiffany shareholders, we would like the value of a great brand and company maximised.”

 

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