French-based luxury goods company LVMH is interested in acquiring the American firm Tiffany & Co., as it has offered to buy it.
LVMH, owned by CEO Bernard Arnault, which holds the patented Louis Vuitton and Christian Dior confirmed Monday about its interest in getting the New York-based company.
“There can be no assurance that these discussions will result in any agreement,” said the company.
Tiffany also confirmed on Monday about the recent development and said that it is reviewing an all-cash proposal from LVMH to buy the company for $120 per share. It is equivalent to a premium of more than 20% over the stock’s closing price on Friday market.
If the deal materializes, Tiffany would be bought roughly at $14.5 billion. However, analysts say there’s a possibility that Tiffany holds out for a better offer.
“A takeover of Tiffany could make a lot of sense,” analyst Bernstein noted.
Acquiring Tiffany would help LVMH beef up its influence in the United States, which accounts for about 25% of its sales.
https://maxitrade.com/en/louis-v-owner-eyes-to-acquire-tiffany-co
