LVMH offers to buy US jeweler Tiffany: report

October 28, 2019 10:09
Tiffany is said to have hired advisers to review an acquisition offer from French luxury goods conglomerate LVMH. Photo: Reuters

Louis Vuitton owner LVMH has approached Tiffany & Co with a US$14.5 billion acquisition offer for the US luxury jeweler, Reuters reports, citing people familiar with the matter.

LVMH submitted a preliminary, non-binding offer to Tiffany earlier this month, according to the report.

The offer is believed to have valued Tiffany at about US$120 per share. Tiffany shares ended trading on Friday at US$98.55.

Tiffany has hired advisers to review LVMH’s offer but has not yet responded to it, and there is no certainty that it will negotiate a deal, sources told Reuters.

LVMH, which is behind brands such as Fendi, Christian Dior and Givenchy and is headquartered in Paris, has stood out for several years as one of the top performers in the upscale retail sector.

Tiffany, on the other hand, has not been as resilient.

The jeweler has been refreshing its offerings with more affordable items such as pendants and earrings, to appeal to millennials who have been gravitating to lower-priced competitors.

Based in New York and best known for its diamond engagement rings, Tiffany operates more than 300 retail stores globally.

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