French luxury group LVMH offers to buy U.S jeweler Tiffany: sources

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#33
"Tiffany Likely to Play Hard to Get as LVMH Awaits Answer"

"- After eyeing Tiffany for years, LVMH submitted an offer last month as it enjoys record cash flow and revenue while the blue box company struggles with falling sales and flattening profits, according to people familiar with the matter, who asked to not be identified because details of the discussions aren’t public. -"

-> https://www.bloomberg.com/news/arti...ely-to-play-hard-to-get-as-lvmh-awaits-answer

Kind regards,
Oliver
 
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#34
If LVMH succeeded in its acquisition of Tiffany, I doubt gold items would be retired as some speculate in this thread. Currently, Tiffany sells mostly sterling jewelry, which is one of the reasons the brand has lost some of its cachet over the years. LVMH is most likely to take the brand up market, which has been the company’s strategy for every brand they have acquired.
 
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#35
fabuleux said:
If LVMH succeeded in its acquisition of Tiffany, I doubt gold items would be retired as some speculate in this thread. Currently, Tiffany sells mostly sterling jewelry, which is one of the reasons the brand has lost some of its cachet over the years. LVMH is most likely to take the brand up market, which has been the company’s strategy for every brand they have acquired.
Click to expand...
Sorry, I'm not good at explaining myself but I doubt that ALL gold items will be retired. I just have the unfortunate luck of finding items whether they be sterling silver or gold when they are on the way to being retired or are they are already retired.
 
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#37
Round two. :)


LVMH, Tiffany Are Said to Enter Talks on $16 Billion Offer

-> https://www.bloomberg.com/news/arti...e-said-to-enter-talks-after-lvmh-boosts-offer

LVMH Has The Upper Hand in Tiffany Talks Without Rival Bidder

"Tiffany Is Worth the $16 Billion Extravagance -
But LVMH shouldn't be tempted to pay more for the jeweler just because it can."

-> https://www.bloomberg.com/opinion/a...er-hand-in-tiffany-talks-without-rival-bidder

--

And an interesting hire. ;)

After Barney’s Bankruptcy, Ex-CEO Joins Tiffany

"Tiffany Hires Former Barneys CEO Vitale as Chief Brand Officer"

-> https://www.bloomberg.com/news/arti...mer-barneys-ceo-vitale-as-chief-brand-officer


Kind regards,
Oliver
 
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#38
Two more interesting pieces:

Cartier Owner Richemont Signals Tiffany Bid Is Unlikely

-> https://www.bloomberg.com/news/arti...gs-growth-misses-estimates-on-hong-kong-slump

Bernard Arnault's LVMH Will Be Hard to Beat in Tiffany Battle

"France's King of Bling Has $20 Billion to Play With - Richemont and Kering might be worried about LVMH’s bid for Tiffany, but it would be a bold move to go up against Bernard Arnault’s deep pockets." (Personal note, I think "France's King of Bling" is a tad bit disrespectful, bad judgement ...)

-> https://www.bloomberg.com/opinion/a...s-lvmh-will-be-hard-to-beat-in-tiffany-battle

Kind regards,
Oliver
 
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#39
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#40
LVMH reaches deal to acquire Tiffany for $16.3 billion
https://www.cnbc.com/2019/11/24/lvmh-reaches-deal-to-acquire-tiffany-for-16point3-billion.html
  • Bulgari owner LVMH has reached a deal to buy Tiffany & Co. at $135 a share, or $16.3 billion, according to sources familiar with the matter.
  • The boards of the luxury firms have been discussing a potential deal since last month, and will meet on Sunday to approve a final plan.
  • Shares of Tiffany, the iconic New York-based jeweler, have risen over excitement of a higher-priced deal. Shares closed on Friday at $125.51, and traded at about $140 in the middle of last year.
Bulgari owner LVMH has reached a deal to buy Tiffany & Co. at $135 a share in cash, or $16.3 billion, according to sources familiar with the matter.

The boards of the luxury firms have been discussing a potential deal since last month, and will meet on Sunday to approve the deal, sources tell CNBC’s David Faber.


An agreement could be announced as soon as Monday.

Shares of Tiffany, the iconic New York-based jeweler, have risen over hopes of a higher priced deal. Shares closed on Friday at $125.51. They had traded at about $140 in the middle of last year.

Jewelry was one of the strongest performing areas of the luxury industry in 2018, according to consultancy Bain & Co, which forecast that comparable sales in the $20 billion global market were set to grow 7% this year.

The jeweler has also pushed an expansion into China, but experienced a decline in sales in the U.S. and Asia from factors like the U.S.-China trade war.


Analysts at Credit Suisse and Cowen say Tiffany could be worth roughly $140-$160 per share.

Paris-based LMVH has about $50 billion in annual revenue from brands including Louis Vuitton and Dom Perignon. Acquiring Tiffany would give LVMH exposure to the bridal and diamond category and to more U.S. luxury customers.

LVMH plans to keep the Bulgari and Tiffany’s brands separate if the deal materializes. The company’s primary rivals, including Gucci-owner Kering and Switzerland’s Richemont, which owns Cartier, are also increasing their exposure to high-end jewelry.

The Financial Times first reported news that LVMH and Tiffany reached a deal.

Tiffany, founded in New York in 1837 and featured in the 1961 movie “Breakfast at Tiffany’s,” has struggled with growth over the last several years. It experienced falling annual sales and profit since 2015, before a revenue turnaround in 2017.
 
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#42
LVMH nears deal to buy Tiffany after raising offer to $16.7bn
https://www.ft.com/content/c7a7b230-0ec2-11ea-a7e6-62bf4f9e548a
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https://www.ft.com/content/c7a7b230-0ec2-11ea-a7e6-62bf4f9e548a

LVMH is set to buy Tiffany & Co for $16.7bn, after the US jeweller convinced Bernard Arnault’s luxury group to raise its takeover offer by about $600m to clinch an agreement, according to people close to the deal. The deal, one of the biggest in the career of Mr Arnault, amounts to a bet by Europe’s richest man that his group can restore the brand to its former glory as a top name in global luxury. The boards of both companies are meeting on Sunday to approve the latest all-cash bid from LVMH for the US business known for its diamond engagement rings. At $135 a share, the improved takeover offer values Tiffany at $16.3bn before including net debt of $350m. An agreement could be unveiled as soon as Monday, the people said, although they cautioned that there were still a few more hurdles to overcome before any transaction was signed off. Tiffany, founded in 1837, achieved famed status with its trademark blue boxes and from the film adaptation of the Truman Capote novella Breakfast at Tiffany’s starring Audrey Hepburn in 1961. But that allure has faded in recent years. Several advisers working with luxury companies questioned the logic behind a deal, asking why would Mr Arnault buy a business that had fallen off the list of top-tier brands. Beyond appearances, Tiffany’s business has also had to cope with the impact of lower spending by tourists and a strong US dollar. For LVMH, however, the acquisition would deepen its presence in jewellery, allowing it to compete in the category more closely with the likes of Switzerland’s Richemont in one of the fastest-growing categories in the personal luxury goods sector. Tiffany, which has a considerable footprint in the US and remains popular with Asian consumers, would sit in a portfolio that includes Bulgari, the Italian jeweller, which Mr Arnault acquired in 2011 for $5.2bn. LVMH’s broader stable of brands include Louis Vuitton, Dior and Sephora. The two sides have been in talks for weeks since it was revealed that LVMH tabled its first offer at $120 a share in October. That bid was delivered in conjunction with Mr Arnault’s arrival to the US to visit a new LVMH factory in Texas with President Donald *****, where Louis Vuitton is producing “Made in the USA” handbags. Last week, the French group increased its offer to $130 a share and was granted access to Tiffany’s books to conduct due diligence. The company’s share price closed last Friday in New York at $125.51. As recently as August, the stock was trading close to $80 a share. For the full year to the end of July, Tiffany reported revenues of $4.4bn, down nearly 1 per cent from a year ago, and net income of $561m, an increase of 13 per cent. The company employs over 14,000 staff, according to Capital IQ. Tiffany and LVMH did not immediately respond to a request for comment.
 
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