Luxury Group Giant LVMH Bids USD14.9 billion for Jeweler Tiffany & Co.

Luxury Group Giant LVMH Bids USD14.9 billion for Jeweler Tiffany & Co.

LVMH’s bid for Tiffany & Co. is slated to be one of the biggest acquisitions of 2019 should it go through.

French luxury goods conglomerate LVMH has its eyes on expanding its foothold in the jewellery market with a USD14.9 billion offer for the iconic American jeweller Tiffany & Co.

According to reports from Bloomberg News, the owner of luxury brands like Louis Vuitton and Givenchy gave the all-cash bid that values Tiffany at USD120 per share, a 22% premium over its stock price of USD98.55 as of 25 Oct 2019. That has since pushed the share price of Tiffany up by 30% to USD127.99 when trading resumed on 28 Oct 2019.

Despite this exceptional valuation, analysts expect Tiffany to reject the unsolicited bid and seek for a higher valuation, as much USD140 -USD160 per share.

Should the bid go through this would represent the largest deal by LVMH Chairman and Chief Executive Officer Bernard Arnault. A successful LVMH bid for Tiffany would also help the luxury conglomerate establish a greater presence in the United States and in the jewellery market.

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