Tiffany and Co. announced a stock takeover of $ 120 million by LVMH. LVMH is the company known for its range of luxury products such as Louis Vuitton bags and Bulgari watches. The takeover ensured rise of 30% in the shares of the company.
The stock of Tiffany increased to $ 130.40 and closed at $ 129.73. It was a record in the last 52 weeks. It is an indicator that Bernard Arnault is expected to sweeten his bid by the investors. Bernard Arnault is currently the richest man in Europe. The offer is still in its review stage from the board of directors of Tiffany. They are also discussing the matter with advisors from Goldman Sachs, Centerview Partners etc.
According to our reports, Arnault has coveted Tiffani for some time now. Edward Jones, an analyst, revealed that the rumor of this deal had been around for almost a decade. The share prices of Tiffani have increased recently. But Bernard Arnault is looking to negotiate the price with the company. He makes 41% of his sales in the US only. But currently, the jeweler is in presently in the middle of a turnaround.
Researchers believe that the growth of Tiffani will not be very high in the upcoming five years.
But Arnault will have to increase his bid to make sure that he owns Tiffani. The Tiffani store is made famous by the “Breakfast at Tiffani’s” show by Audrey Hepburn. It is also quite renowned for Louis Comfort Tiffany’s old lamp designs.
According to analyst Edward Eruma believes that a price range of $125 to $130 million is reasonable for this transaction. On the other hand, Edward Jones thinks that the price should be more than $ 140 million. LVMH revealed the preliminary discussions for the potential transaction has begun.