New York: LVMH, owner of Louis Vuitton, is making a $14.5 billion deal to buy jeweler Tiffany & Co. Tiffany confirmed it has received an “unsolicited, non-binding proposal” from LVMH Moet Hennessy – Louis Vuitton to acquire Tiffany for $120 per share in cash.
The group approached New York-based Tiffany with a takeover proposal earlier this month, Bloomberg News reported Saturday, citing people who asked not to be identified because the discussions are private. The all-cash bid values the jeweler at about $120 a share, one said Sunday — or about 22% more than the Oct. 25 closing price. Tiffany is currently evaluating the bid and there’s no guarantee an agreement will be reached, they said.
“Tiffany could prove an interesting fit to LVMH, which is still underpenetrated in jewelry,” said Deborah Aitken, senior luxury-goods analyst at Bloomberg Intelligence. With branded jewelry growing at about 6% a year — about 200 basis points faster than high-end watches — she said buying Tiffany could help LVMH compete against companies such as Swiss rival Richemont SA, the owner of Cartier and Van Cleef & Arpels.
If successful, though, the purchase would be the biggest deal yet for LVMH founder and Chairman Bernard Arnault, Europe’s richest man. An acquisition would give LVMH an iconic 182-year-old U.S. brand known for its robin’s egg blue boxes and its role as a favorite haunt of Holly Golightly in Truman Capote’s “Breakfast at Tiffany’s.” The French company also owns the Bulgari jewel and watch brand, Sephora cosmetics stores, Hublot watches and Dom Perignon Champagne.
