LVMH bids $120 a share for Tiffany

• Aimed at boosting its presence in jewelry, currently a high-growth opportunity, LVMH has made an unsolicited offer of $120 per share for Tiffany. The bid values the luxury jeweler at $14.5B, ~22% above its market cap at the close on Friday ($98.55).
• According to informed sources, LVMH will need to sweeten its offer if it wants to get the deal done. The stock reached almost $140/share last summer.
• Tiffany, which generates ~$4B in annual sales, has been struggling to re-ignite sales growth. CEO Alessandro Bogliolo is banking on China and tourist spending in the U.S. to stoke the top line.

Comments

[PITX3]

Nice gains for shareholders and LVMH will maximize the brand.. I hope they raise the offer a bit more to 130-140$ to add a little bit more of spice

[Allen Greathouse]

Nah retain value for us LVMH share holders

[spiritofemerson]

If it happens, just take the capital and buy LVMH. Would stink to have to pay cap gains though.

[jeaster]

I hope that they don’t accept anything less than 140. One less great compounding company.

[arkdetriumph]

"start Monday off on a raging bullish note" yet again.
it would be hilarious if this bid fails actually.

[adamgay33]

I'm rich!!! wahoooo 🤷🏽‍♂️

[Teutonic Knight]

Tiffany is in Trouble, that is why

Poison Pill is now imminent and needed

[georgefelix75]

The margins would have to be 100% to make sense and it’s still 3.5 yr return of capital

[Kingkang80]

I hope Tiffany does not say yes to the offer. Tiffany is an American tradition and historic.

[EriCoin]

Money has no tradition. If I were a stockholder, the offer is too good to refuse.

[Sanjay John]

Making money with capitalism is an even bigger American tradition.

[King Rat]

@Kingkang I have no interest in Tiffany (the company) but agree that managers of cherished brands should take pride in their corporate history.
However over the years seeing Dow Jones (news) sell out domestically, Budweiser selling out internationally, and then Monsanto (thankfully in that case), I have little hope for Tiffany on statistics alone. Again, I can only hope management has a sense of pride and respect.